Sunday, April 26, 2015

Time to buy Quality Stocks

It was another down week for the markets and the markets were down by 3.5 %. The markets have come down to attractive levels and it is time to buy.

1. The FIIs have been net sellers entire month and though they show a buy  figure of 16000 crores for the month, the entire thing comes on 21st April when the Sun Pharma stock was sold by Daichi.

2. Even though the markets have corrected by about 10 pc, most of the blue chip stocks have gone down by 20-25 pc.

3. If we consider this as a 3 legged down move then,

A was 9119 - 8269 = 850
B was 8269 - 8845 = 576
C is 8845 - 8273 and ongoing = 572

targets could be 7945 or 7745.

In either case, the time to buy has come. One cannot time the markets to catch the exact top or exact bottom.

4. The Global things seem to be stable. Greece issues come and go periodically.

5. Crude has stabilized around 60-65 USD. Any further spike would put pressure on the markets.

The current fall again highlights the importance of timely profit booking. Stocks which could have been sold in early March are now available at 25 % discount.

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