Dear Patrons, first of all let me apologize for a long break in this blog due to some unavoidable circumstances. Coming back to our weekly analysis of the equity markets. The last week has seen a roller coaster ride in the markets, with the markets witnessing up and down movements throughout the week.
Nifty during the week saw high volatility and big moves both on the up as well as down side. During the week Nifty saw High of 7470 and low of 7241. The biggest reason for the fall can be attributed to the Chinese markets. Lack of stability in the Chinese Markets had a big impact on the world markets including emerging markets.
One more attribution for the fall can go to the currency reading. INR fail sharply against the USD, which prompted the FIIs to sell off Indian equity. The INR though behaved very well and held its ground as compared to other currencies. However, we would like to caution that the INR may post a new low in coming period.
Most of the world markets lost close to 3% in one single trading session, however, the tide turned positive after the ECB chief's announcement of further stimulus to the European Union economy. This positive news helped world markets gain some of the lost ground and almost all the markets closed with handsome gains.
We had clearly mentioned in our last blog that we see larger downside in the markets, when Nifty was trading around 7800. Current reading on Nifty is around 7400, which goes to show our conviction in technical analysis.
We still maintain our target of 6800 on the Nifty to arrive eventually. In such a scenario what do we do?
The mantra remains the same. "Accumulate" good quality stocks in every decline with a long term view. Our markets should look upwards in H2CY16. With a strategy to hold stocks for a long term one can start accumulating certain good quality stocks with every dip in the prices.
Happy Investing!!!!!
