Why are markets falling?
Hi friends, Two months back when market was making new highs, no one was considering even a slightest possibility of correction. Today, when markets are falling everyday, no one is talking about bulls to come back! So, how should long term investors look at this scenario. Well, here are a few points to consider:
1. SITUATION: As I have informed earlier, Nifty is in the last phase of head & shoulder pattern
INSIGHT: Nifty fall can continue till 23800 and then bounce back from there. So, for long term investors, its a “discount sale shopping season” on Dalal Street. Keep an eye on high quality stocks near 52weeks low.
2. SITUATION: Investors expected too much from Q2 earnings season, but most of the companies reported moderate revenue and profit growth. The disappointment has led negative sentiment to grip the market.
INSIGHT: Auto stocks may still be under pressure, but Banks, Midcap IT can see revival.
3. SITUATION: FIIs sold 1 Lakh crores in last 1 month, pushing investors to ‘panic selling’
INSIGHT: Stay strong with high quality large cap debt free companies. In some cases, prices may fall upto 50%, but that doesnt mean the fundamentals became suddenly weak. So, buy right and hold tight! FIIs cant stay away for long, their greed will bring them back. Disclaimer: This is just a personal opinion of the author and there is no buying/selling recommendation.Show less
