|Market This Week
||Last week the NIFTY closed at 8000 registering a loss of 3.6% over last week. Monday was a black one as the market experienced one of the worst falls in its history. The fall and the panic is attributed to slowdown in china, falling crude which has led to falling bond prices in the US, falling commodity prices globally etc. However the good part was that the NIFTY gave good pull back rallies and respected the lower end of our consolidation channel of 7900-8650. The pullback rallies will also ensure that there will be some sort of SHORT coverings in future which would lead to small pull back rallies. A close below 7900 is definitely a problem but for now the situation is not that worse though there may be volatility. A cautious approach is definitely needed from us but the panic should not get into our heads. Rather the mantra should be to stay disciplined. If we see the overall situation, it is a perfect one for all the retail investors to get wiped off the market. The panic will always lead them to exit and stay away and then once the market starts rallying they will be clueless and miss the bus again. We should not let that happen to us. India has gathered a lot of attention after the slowdown in China. All eyes are rested on us now. It’s just a matter of time! Nothing concrete can be said about the markets now and hence no point in reaching to any conclusions. Markets are in an indecisive mode for now. Therefore let’s approach them one week at a time. As we lack triggers on the domestic front, markets would try to take global cues. The second series of the parliament session if successful might add the necessary fuel to the rally. On the global front a lot would depend on the US FED meeting scheduled in first week of September. Let’s wait and watch and be patient. For this week we must be cautious and stay away from the markets! All the best!