|Market This Week
||Last week the NIFTY closed at 7610.45 registering a loss of 2.2% over previous week. It did respect its important support level of 7600 but it spread a negative wave across. All the emerging markets are witnessing the same trend due to selling pressure from the FII’s. Global markets too are not in the best of their health. Our markets are more in the wait and watch mode. Neither is 7600 being taken off on the lower side nor 8300 on the higher side. They are showing a strong consolidation between 7550-8000. The markets would like to take clues from the December quarter earnings, passing of GST etc. to break the consolidation but doesn’t look like if that will happen soon. It’s also waiting for the US Fed decision on rate hike next week. In this consolidation phase, we must be extremely cautious and disciplined. Low risk taking investors should actually stay away from the markets. This does not mean that we should lose faith in equities. We have always had such phases and would continue to have them in future as well. These phases help the markets to look back as to how the fundamentals are evolving. There comes a point when things become undervalued and attractive and in no time liquidity flows in and a fresh rally starts. So we have nothing really to worry in the longer story of our asset class. This week the NIFTY is likely to consolidate with a negative bias. If it breaks below 7600, it will be difficult to predict the bottom. In that case we should all avoid the markets totally. It will face strong resistance at 8000-8300. Stay disciplined on all existing positions. Please do not speculate and get carried away. All the best!