Nifty

#68 Nifty Update

NIFTY reacted as expected to Downgrade of US rating. NIFTY closed at 5118 down 92 points. NIFTY had opened gap down at 5082 made a low at 5054 and had recovered almost flat to fill up the morning gap. S&P downgrading US has been the most shared topic around the world. All the markets had been volatile throughout the day but we have to wait and watch how does US DOW reacts to the news. European futures were trading in negative zone but markets opened positively beyond expectations which lead our market to almost positive zone. But eventually Europe also lost and couldnt hold up their hand to bulls. Since last 2 days intraday recovery has proved to be false making long term investors greedy to enter long  positions. Market all over the world are very choppy and its difficult to say that any market has bottomed out or stabilize. We should not panic but shouldnt take long positions unless confirmation of stablization or reversal. As nicely said by Sanjoy Bhattacharya in latest forbes issue that retail investors often get into stocks at wrong time i.e. at peak and then the stock slips and they convert their investment period to long term. He has rightly said, the most important thing for your investment is the right time to sell rather than right time to enter. For example he said that all long term investors should have stop loss of maximum 15% and should cut losses at that level. Even if you entered at the peak you must cut your position on downside. He said while reviewing your
portfolio your must first sell of BBBB shares and not shares in profit.. You might be guessing whats BBBB??? its Bent, Broken or  Beyond Belief movement. Now talking of long term we must look at
logistics listed companies. Logistic will be a multibagger sector where you can make tremendous long term profits. why??? Its because government of India in last october has set up a Ware Housing
Regulatory and Development Authority(WRDA) which has been assigned to develop warehouses all over the country for proper storage of commodities including fruits and vegetables. Farmers are not getting
best price because they sell off commodities to middlemen at lower price to get liquidity so government has decided to give proper logistics and warehousing facilities to farmers and WRDA has said they
are gonna set up around 300 certified warehouses in no time. So look out for warehousing and logistics/transport companies on stock exchanges for making long term investment. Coming to NIFTY Technicals market is in oversold condition. MACD has given bearish confirmation. You may expect short term rally upto 5350 but market will be bullish only if it closes above 5390. So be long only above 5400 level. Risk takers can short NIFTY with SL of 5390.
NIFTY levels for 9th August:-
R-5168                  S-5056
R-5230                  S-5000
R-5280                  S-4987
R-5313                  S-4900

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