Monday, September 22, 2014

Wait and Watch Continues

The markets gained 0.2 pc for the week but what was most impressive was the recovery after the Fed announcement of interest rates not rising for a considerable period of time. Let us see what has changed in the past week.

1. The options for the markets are making fresh highs and making a short term top between now and Diwali. This possibility gets confirmed on the break of previous top of 8181.
The second option is consolidating till the Haryana and Maharashtra elections results on October 19th and then correcting or making a top in euphoria.
The third one is that the top is already made and we are going to have a 10-20 pc bull market correction now.

2. The Maharashtra Alliance picture gets murkier by the day and everyone has been pushed to the brink. The last date for filing nominations is this Saturday and the picture will be clear by this weekend.

3. If everyone fights separately, it will be a free for all and post poll there could be a BJP NCP tie up as well.

4. The FII purchases have dipped during this past 1 week.

5. Gold continues to decline and should be avoided for the moment.

The best course of action right is keep part booking of profits and not to exit completely from any stock. If the markets go down add the same stocks back.
Finally, the money taken out from the markets is profits earned and not notional profits.

3 comments:

  1. When will time for buying gold come? ( should it be bought when nifty comes near multi year top, say in late 2015?)
    What is the preferred way for pure investment purpose - ETF/fund/ physical/any other?

    ReplyDelete
  2. For Investment Purposes, the preferred way is ETF.

    Right now, the focus is Equities, once equities come close to a top, that is the time to buy Gold, maybe late 2015.

    ReplyDelete
  3. Nice blog and very informative this type of blogs are very helpful for investors because every investor know that market is very risky but this type of blog is guided us and also increase our daily to daily information about Commodity Intraday Gold Tips market.

    ReplyDelete