Research group at NriInvestIndia.com anticipates the markets too stay choppy in the coming weeks due to the whole nuclear deal skepticism, assuming the outcome to be in India’s favour. The markets are in a very tight range and there is not much selling or buying on any of the blue chip stock counters says the equity analyst Mr. Gaurav Sharma at NriInvestIndia.com. He adds, we are betting on the fact that the outcome would be in India’s favor, thus most of the clients are adding good power sector stocks in both Indian mutual funds and derivatives market.
The Indian stock market is definitely not in one direction, and building positions on both buy or short sides is not a fairly good idea to make money in such a tight market. Analysts believe that the market is definitely going to see some action as soon some breaking news come out, but the effect of such news on the Indian stock market would not be lasting long, and there could be a major pull back leading the market to touch the 13000 levels.
Having said that, economists believe that the inflation would inch down to 10% in the coming quarter that would become visible in retail and consumer durable products soon, which would in turn boost consumer confidence. This would definitely push the markets to bounce back from the 13000 levels, and we might see some fresh buying, and both sensex and nifty might witness some rally.
These levels could be of great importance for those domestic as well as NRI clients who did not get a chance to make investments into top Indian mutual funds when the market was trading at 18000 levels. A prudent idea would be to invest 25% of your savings at these levels, and when the market drops down 20% from here, another 40% of the savings can be invested.
Current market conditions are as such that its very hard to predict the direction of the market, thus it is vital important for both resident as well as non resident investors to act wisely and invest with a proper game plan. The whole idea is to do investing wisely and with common sense, and not forcing one self into rush and landing into unnecessarily diversification of funds into some unwanted financial instruments. For more ideas as to how to go about drafting a portfolio, one should consult a good investment adviser and leave the job of asset allocation to professionals.