Dear patrons, welcome to weekly analysis of the week gone by. On the onset "Wishes for a Happy, Healthy and prosperous Deepawali" to you. May this Deepawali bring lots of Joy, Wisdom and Prosperity to you.
Coming to the markets, Nifty saw a lack luster week. It lost around 1% from the previous week, but the movement was very dull and stock centric. What we saw during the week was lightening of positions. The markets opened higher on a couple of occasions but failed to sustain the gains and lost ground on back of profit booking on account of Bihar election results.
Bihar Election results played the spoilsport during last week, as investors awaited the outcome before taking any risk in the market. In the likely outcome of the NDA forming government in Bihar, we may see smart up move in the markets, if however the results are against the NDA, we may see a knee jerk reaction and stability thereafter. The markets were jittery due to Bihar is evident from the following chart. Indian Equities were worst performing among asian peers and most of the blame goes to Elections in Bihar.
What should we do in this market?
As always, the mantra remains same. Select good quality stocks and Stay Invested.
As suggested in the last blog Nifty managed to float above 7950 for the week, although it broke 7950, it closed above the level. We believe, with a positive outcome in Bihar and negative data in the US, Nifty should start moving up from Monday. The worst case scenario on Nifty is 7700 levels. However, we would also like to be cautious on the markets for some more time as far as trading is concerned.
Happy Investing!
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