Technical Charts:
In stock market, when there is "blood on street", buying good business (may be in some distress) is the most easy way to create wealth, although there may be some short term pain.
For time time being, technically, 7600 may be a decent support for our market and consecutive closing below that for any reason, 7300 should be the near term base and Nifty has to sustain above 7950 area for any meaningful rally towards 8355 zone in the near term. By sustaining over 8675 zone, FY:16-17 target for Nifty may be around 9200-9700, if we see clear visible overall economic recovery by H2FY16.
Going ahead, dovish Fed, huge arsenal of PBOC (don't underestimate China) along with ever green ECB & BOJ will support the global market and be sure that these four major central banks will not allow any contagion or disorderly movement in the financial market unlike 2006-08 crisis.
Back home, we may see GST, further rate cuts (at least 0.50% in FY16) and various other reform measures (both legislative & non-legislative). Depressed commodity prices (specially crude oil) is also going to be beneficial for our economy in the long term, although its giving pain to some sectors in the short term. Bihar election may give some cues for "Modi wave", but going by various combinations & permutations, BJP will not get the required majority of its own until next term (CY:2019). So, it has to follow effective floor management and specific "opponent party" wise strategy for passage of various reform bills in RS. Govt also need to believe in its own reform agenda & we may see even one or two joint sessions of parliament for passage of important reform bills as country can't wait for "mood" of opponent political parties further.
As a safe heaven appeal, China's pain may be India's gain in the coming days as there will no dearth of liquidity globally (thanks to 24/7 money printing in different forms) and among EM/BRICS, India is certainly a bright spot (mainland China market will need time to be more mature with Russia & Brazil not in a comfortable position). Now, India's macroeconomic position is in a comfortable position given low inflation, CAD and competitive INR.
For investment idea, here are some bitten down stocks for portfolio: These are blue chip stocks having excellent debt profile, management and great brand names & business model, now available at relatively cheaper price.
Note: Investment time frame:3-12 months
Allocation: Equal @10% of total portfolio for 10 stocks
Investment mode: SIP @50% each in suggested buying zone
(Trading SL suggested as par immediate positional support zone of 7600 for Nifty)
In stock market, when there is "blood on street", buying good business (may be in some distress) is the most easy way to create wealth, although there may be some short term pain.
For time time being, technically, 7600 may be a decent support for our market and consecutive closing below that for any reason, 7300 should be the near term base and Nifty has to sustain above 7950 area for any meaningful rally towards 8355 zone in the near term. By sustaining over 8675 zone, FY:16-17 target for Nifty may be around 9200-9700, if we see clear visible overall economic recovery by H2FY16.
Going ahead, dovish Fed, huge arsenal of PBOC (don't underestimate China) along with ever green ECB & BOJ will support the global market and be sure that these four major central banks will not allow any contagion or disorderly movement in the financial market unlike 2006-08 crisis.
Back home, we may see GST, further rate cuts (at least 0.50% in FY16) and various other reform measures (both legislative & non-legislative). Depressed commodity prices (specially crude oil) is also going to be beneficial for our economy in the long term, although its giving pain to some sectors in the short term. Bihar election may give some cues for "Modi wave", but going by various combinations & permutations, BJP will not get the required majority of its own until next term (CY:2019). So, it has to follow effective floor management and specific "opponent party" wise strategy for passage of various reform bills in RS. Govt also need to believe in its own reform agenda & we may see even one or two joint sessions of parliament for passage of important reform bills as country can't wait for "mood" of opponent political parties further.
As a safe heaven appeal, China's pain may be India's gain in the coming days as there will no dearth of liquidity globally (thanks to 24/7 money printing in different forms) and among EM/BRICS, India is certainly a bright spot (mainland China market will need time to be more mature with Russia & Brazil not in a comfortable position). Now, India's macroeconomic position is in a comfortable position given low inflation, CAD and competitive INR.
For investment idea, here are some bitten down stocks for portfolio: These are blue chip stocks having excellent debt profile, management and great brand names & business model, now available at relatively cheaper price.
Note: Investment time frame:3-12 months
Allocation: Equal @10% of total portfolio for 10 stocks
Investment mode: SIP @50% each in suggested buying zone
(Trading SL suggested as par immediate positional support zone of 7600 for Nifty)
| STOCK | CMP | BUYING ZONE (IDEAL) | TGT | TRADING SL(BLW) | ||||||
| TATA MOTORS | 338 | 310-305 | 415-530-615 | 299 | ||||||
| TATA STEEL | 212 | 200-190 | 350-410-580 | 185 | ||||||
| SBI | 247 | 255-245 | 305-335-360 | 240 | ||||||
| AXIS BK | 497 | 490-480 | 590-615-705 | 475 | ||||||
| ICICI BK | 280 | 280-270 | 325-395-530 | 265 | ||||||
| RIL | 865 | 840-820 | 1000-1070-1270 | 815/790 | ||||||
| SUN PHARMA | 889 | 830-810 | 965-1010-1200 | 790 | ||||||
| TCS | 2620 | 2540-2490 | 2750-2840-3150 | 2470 | ||||||
| COAL INDIA | 360 | 340-335 | 395-445-495 | 330 | ||||||
| LT | 1600 | 1600-1550 | 1760-1900-2100 | 1525 |
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