RETAIL WASH , WHAT NEXT?

                                              RETAIL WASH

                                                   WHAT NEXT

      

                                 

              Dear Investors

          The blood bath on DALAL STREET has washed the retail investors, who were afraid of entering the stock markets after the previous crash. As indicated in last BLOG

POST (8TH DECEMBER) market has taken breather at most important support, 5766.

There is every chance that there will be a ‘Dead Cat Bounce’ either in last trading hour on Friday or on Monday. One has to be very careful before making big positions in Cash or F&O markets because Indian markets are not ‘Out of Woods’.

The   Scam, Political deadlock, Oil situation …….etc are not favorable for Indian markets .One has to be very careful in picking stocks.

MARKET SITUATION

A SERIES of scam made the life of small investors very difficult. Expect the market to bottom out in next few days. Avoid intraday trading as there is possibility of caught on the wrong foot. Today selective shopping for mid caps can be done by long term Investors only. Expect a irrational and volatile trading day due to fear psychosis resulting in swift moves

The best possible strategy is to stay away The long term investors should use this opportunity to buy selected stocks in mid cap space, keep strict stop-loss and do not trade in F&O.

TECHNICALLY

If Nifty breaks 5766 it may test previous low 5690 and go on testing the intraday low on the same day , 5637..

But to expect a sustained bounce, Nifty has to cross important  resistances at 5800, 5866.  5920,   5960.

If Nifty breaks below 5690 with volumes then the major support is at 5501 which is 200 DMA, which will act as a ‘Trend changer’

Those who are long term investors and can sustain the falls can start doing ‘Cherry Picking’ in Good Stocks’ (not by value but by fundamentals) at every fall.

Others should stay away from market channels and watch ‘Winning Indian Teams ‘Kiwi’s wash out than getting washed in stock market

For long term Investors, can try getting in some stocks in small installments at every falls

Pharma

 Lupin

Ipca

Ranbaxi

Orchid

Banking

ICICI Bank

Kotak Bank

IDBI  Bank

Cap Goods & Egg.

L&T

BGR

Action Const

Crompton

IT

Hexaware

Rolta

And few others like

Pipava Shipyard

Elecon

Tutis Tech

SPIC

Abhishek Ind etc

These are just few stocks , you can pick up your own liked ones , but stay away from Momentum Stocks as they might cause further damage to your wealth

   Happy Hunting

  Dr. Vasant Bele

 Disclaimer: Views expressed are mine. Take your own investment decisions