Dear Investor,
Market correction is still on. The ultimate sell off is not yet here. I advise some patience to the members before doubling down on your position. Following NIFTY chart is clearly marching towards the support of 4900. I see most of the stocks in NIFTY and MID cap space are breaking down. The only sector holding well is Auto.
There is a big difference between current correction and corrections before. The optimism before and now is different. Before investors were all bullish and were expecting spectacular earnings growth. Well to a large extent we are in growth path but the growth is certainly supported by government liquidity supply. The supply is expected to tighten. Just now I heard that US is going to put a spending freeze.
Even though I am bullish on the market, I do not like to buy until 4775 is hit on NIFTY. We are likely to see some bounce before the correction continues. Please give at least 4-6 weeks before investing any more money. I am not talking about daily 1-5% stock fluctuation. We do not participate in day trading which is very risky and 99% people loose money in that. It better to just watch now.
Following stocks are standing very well in this correction. Its not a call to buy these since we are in correction. Keep them on your shopping list when time is more inviting.
Surprisingly Infotech enterprise is moving higher in such a market conditions. Somebody knows something that others do not know about this one. well, Lets watch it for some more time.
Perfect Breakdown Stock
Indiabulls real estate stock formed a perfect breakdown pattern. Its highly unlikely that this stock will be able to survive the correction. There are two possibilities about it, One it is getting ready to bounce hard or it will just crash from here. Next few days will be key to see if it holds its support line.
Another strong standing bullish stock - Havells
Rule no 1 - Do not buy stocks below 150 day moving average line. Remember it all the time.
Thanks
Anil
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