Nifty - Going Forward

When all experts were shouting about the possibility of Nifty reaching 10000 this year, we published an article on August 10th detailing the high probability of a correction in Market. Nifty was trading at 8500-8600 levels and just within a months time it corrected 1000 points. Now the question is what next. Is the correction over?. Do we need to wait more or is this the right time to buy or accumulate more?


Since the FED has postponed the decision to hike the interest rate, the volatility is expected to continue till its next meeting planned in December this year. Also the second thought by Janet Yellen in hiking the interest shows that the so called "speedy recovery" of US economy is still questionable even though the FED is blaming Europe and China for taking a dovish stand this time. Also Janet Yellen confirms that the decision to be made by FED has to completely aligned with world economy, especially China.

"The situation abroad bears close watching," Yellen said, referring to events in China that precipitated a dramatic correction in many global stock markets including the U.S., along with the Dow's 1,000-point plunge on August 24. It's no secret that China's economy is slowing. The question is how much it will impact the rest of the world, including the United States.

"The outlook abroad appears to have become more uncertain," Yellen said. She later added: "The question is whether or not there might be a risk of a more abrupt slowdown."

This is a pronounced shift for the Federal Reserve, which has mostly been stressing for the past year that it sees very solid improvement in the U.S. economy - so much so that it has signalled numerous times that it will likely raise rates in 2015 for the first time in about a decade.

We expect market to be in range bound with a higher limit of 8500 and a lower limit of 7500

Our Approach Going Forward
Market is still in long term bull rally. So our approach would be pretty simple. Continue your SIP. Identify potential stocks which could withstand the short term volatility and real winners in long term.
Good luck to all!! 

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2 comments:

  1. It has taken you very long to post another article. I used to come daily so many times to check for new articles.. Keep posting regularly.

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  2. appreciate your article - so is this a time to review your portfolio, sell/buy? I see few stocks that have been recently suggested are trading at their recommended prices.

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