Dear patrons, the May series for derivatives contract ended with a gain of around 3%. Looking at the scenario around the globe the Indian markets have given good returns last month. Nifty managed to sustain above the all important level of 18000 for the entire May series.
The US markets were volatile losing and gaining on successive days. The US economy is suffering with high interest rates and low consumption leading to recessionary fear. US debt to GDP ratio is very high and for the first time in our memory the rating agencies have placed the US in negative watchlist. The US is looking at a possible default if timely raise in the debt ceiling is not approved.
If at all the US defaults it will have huge bearing on the global economy and the stock markets. In the event of default we will definitely head for a recession around the globe. India will not be able to remain unaffected by such recession, although we believe the impact on India will be far lesser compared to the rest of the world, due to India's high domestic consumption.
Whether the uptrend in Nifty continue or will we see some corrective moves in the markets? Let's try and figure out.
Traders need to be nimble footed and adhere to strict stop loss. Investors can look for investment opportunities in quality stocks in falling markets.
Stay Invested!!!
Happy Investing!!!
“You cannot make profits in the stock market unless you have the ability to bear losses.” ~ Rakesh Jhunjhunwala
P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.
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