Posted By : Kishore B.S
Today the market was very quite. It opened a gap down below its 200 day ema. Nifty traded in a very tight range of 15 points, 5150-5165 for the major part of the day. It was just like any reality TV announcing the winner. The whole episode is just a build up and at last hey announce the winner. The whole day was a build up as which way Nifty would break out. At the end it disappointed by just breaking out 20-30 points on the upside.
The global scenario is growing weaker and weaker day by day. Growth concerns over Europe, China, USA have started a panic in the investors which has lead to sell offs in all the markets all over the world. As Nifty broke the 200 day ema today the short term trend is definitely towards the downside. The confusion over the GAAR policy is adding to the volatility. As of now, seeing the global scenario Nifty is in for a correction to 5000-5050 levels. Tomorrow is a Friday and a day after expiry. So, the volumes might be low tomorrow.
Right now if one needs to be patient. Sit high on cash. Use each and every dip to buy value stocks. Nifty will fall but will bottom out around 5000. Shorting the market with a stop loss of 5275 is also a good strategy. So, sit high on cash and buy good stocks. Be an investor not a trader. Look at the long term perspective not a day or two.
(Inputs Mr. Shubham Deva, An Stock Market Institute Associate, IIT Kanpur)