Flat closing for markets

BLOG MEANT FOR 8 AUGUST 2018 Wednesday

Dear friends,

Today was a slightly quiet day for markets as it traded in a range throughout. It closed flat at end of day. However, Asian markets were positive and the European markets have also closed positively. Currently, US markets are trading marginally positive.

Although, markets are not showing signs of negativity, we should always be careful of profit booking and consolidation since markets are at a high level.

Nifty continues to be in HOLD zone for short term.

The indications for individual stocks for short term only are –

HOLD ZONE –INFOSYS, ASIAN PAINT, RELIANCE INDUSTRIES, ITC, AXIS BANK, SBI, TITAN, TCS, VEDANTA, M&M, HDFC, YES BANK, HINDALCO

WAIT TO BUY ZONE –  HDFC BANK

BUY ZONE – MARUTI (It is showing a Buy indication as per the graph. However, since it has gone around 1% higher than the red line, we must be careful if we are buying for short term. You can buy if you have risk appetite)

If you have been investing for long term regularly, you may have noticed that most of your stocks have already given good returns. You may be getting tempted to sell at current high rates. Although, it sounds logical, this approach of trying to ‘time’ the market, wherein, buy when markets are low and sell when markets are high, does not work. Nobody can guess which is the lowest level and which will be the highest.

As a long term investor, you should stay invested and continue to invest regularly. Over a period of years, these short term ups and downs will not matter since good companies will improve their business and thereby their share prices will appreciate.

We just need to ensure that these companies we invest in continue to grow and perform well so that we can be sure of good profits on our investments.