Hi Friends,
The free fall observed in dow on Friday will have a cascading effect on the Indian stock Markets on Monday.To be very fair expect Nifty to have a fall range between 2.5% to 5.8%.4450 is an important support level from where markets should bounce.The bounce can be of 80-120 points.The better strategy will be to short the second break of 4450 with a sl of 30 points.In a synopsis i expect a vertical fall if 4450 is broken for the second time tomorrow or Nifty opens and remains below those levels.The million dollar question now will be that what should be the way to trade in the stocks going ahead.Should we short tomorrow or use the dips to make fresh purchases.I will personally not advise leveraging at any costs.Markets on a whole is under leveraged and this fall will be more because of oil and global cues then because of any Indian factors.In fundamental analysis there is systematic risk in everyones portfolio due to the movement of the stock markets and we will see the effect of the same tomorrow.If your portfolio is down between 3-5% don't be a bit surprised.My personal analysis says that Buying the next 25% of your free unleveraged (0% margin funding) funds should be the next step going ahead in the markets if Nifty does not break 4450.Stocks to Buy.Avoid real estate stocks for some more time.Use the stocks that give a 4.5-7% dividend yield on an average and have 15-20% growth prospect.The dividend yield will protect any further capital erosion for the same.
nifty supports 4450 and just 4450
Nifty Resistance : If holds 4450 then think of the same.
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