Sunday, February 14, 2016

Markets defy Average Fall for Feb

The markets tanked big time and the way individual stocks sold off, it looks like capitulation is happening. Let us see what could be the factors to influence the markets.

1. The Result season has come to an end. The PSU Banks finally acknowledged huge bad loans and that lead to the markets tanking further.

2. The FIIs are continuing to sell big time and till the time they stop their basket selling, the markets will not rise.

3. There is a fear factor in the Global Markets and hence Gold is rising. Only, once this fear factor wave passes over, the markets will start rising.

4. Technically, we are in the support zone of 6400-6800. If 6400 breaks then one can say entire bull market phase is over and we are in a for a prolonged recession.

5. The Passage of the GST bill and the Union Budget are only things which can make the markets rise from these levels.

6. 7400-7600 the previous highs now becomes a strong resistance zone and an area to which the markets could attempt before the budget.

7. The indicators have reached an oversold area and a Technical bounce is due. This bounce could be 400-500 points before we resume the downtrend.

From the way, the markets have fallen it is very clear, that we are in a for a prolonged bear market and it will take at least 1 year to 18 months before the market can make new highs. It is a time to be patient and stay invested in good quality stocks.

Those brave enough to buy now may well see the stocks they had bought doubling in next 2 or 3 years.

2 comments:

  1. Good research Nishit bhai. Can you recommend couple of stock that you think may double up and had good potential.

    Thanks
    Sajid Karke

    ReplyDelete
  2. Good research Nishit bhai. Can you recommend couple of stock that you think may double up and had good potential.

    Thanks
    Sajid Karke

    ReplyDelete