|Market This Week
||Last week despite rate cut from RBI, to everyone’s surprise the markets fell and continued the fall till Friday. The NIFTY breached the 8200 levels which is not a very good sign in the short term. The weekly chart of NIFTY is showing weakness too. It was good that we all adopted the wait and watch policy. Now again for this week too we should all be on the sidelines adopting the wait and watch philosophy. The markets this week will try to factor in the RBI governors statement of no further reduction in repo rates unless there is further clarity on inflation. It is likely to be volatile. However amidst all these events, there is no risk to the bull markets. The correction that has come in is actually a positive sign for the markets in the long term. Valuations would become a lot cheaper and it would keep everybody including the FII’s looking for futuristic ideas and opportunities. Good time for us to get into some quality picks. The next immediate trigger for the markets would be news and actions around the GST in the monsoon session of the parliament. It is being tagged as a game changer for the Indian economy. Now, how long the correction/consolidation phase will continue only time will tell but for now let’s approach the markets one week at a time. We advise desperate investors to take positions in “Delivery” recommendations as they tend to be a lot stable and safer. The levels of 7900-8200 and 8200-8400 are the two consolidation channels that NIFTY is likely to trade into. Let’s accept this phase showing patience and discipline. All the best!