|Market This Week
||Last week the NIFTY closed at 7601 registering a loss of 4.5% over previous week creating panic and turmoil among investors. The fall was attributed primarily due to worries over China’s economic events. The worry would continue in the short term and would show signs of stabilizing once the Chinese yuan stabilizes. Now NIFTY is very close to the lower end 7600 of our consolidation channel (7600-8300). Though it will be difficult to predict the bottom if NIFTY breaks 7600 but the downside will be limited. Domestically we are better placed with a lot of positive events to look forward to. Our markets would continue to show good stock specific movements. However, with the turmoil that’s going on, our markets could be super volatile in the short term. Volatile markets can kill the best of the recommended stocks and hence it is best to wait and watch for now. Let’s be on the side lines for this week and see how things shape up. Short term upside cannot be ruled out after the last week fall; this should give some breather to the stocks which have taken a short term beating. Let’s be disciplined on all our existing positions. Do not get desperate to take new positions. The market throws opportunities every now and then. In this phase we must ensure that our capital is well protected. All the best!