INVESTORS ARE GOOD TO KNOW THE TREND OF MARKET IN LONG TERM
MARKET BROAD TREND:
NIFTY IS CONSIDERED TO CROSS 8500 ( 200 WEEK AVERAGE ). ONE CAN SEE THAT MARKET RALLY IS GETTING TIRED AND IS LOOSING STRENGTH AND ENTHUSIASM WITH TIME. MARKET MAY KEEP CONSOLIDATING ITSELF WITHIN A RANGE FOR SOME WEEK / MONTHS.
VISIBLE REASON:
THE RALLY WE SAW IN FIRST HALF OF 2017 WAS DEPENDENT ON DII’S. MAINLY THE MONEY COMING FROM RETAILER TO MUTUAL FUNDS, DURING THAT PERIOD MUTUAL FUND’S HAD RECEIVED THE A HUGE AMOUNT FROM RETAILERS, THEY HAVE EVER RECEIVED.
FII’S WHICH ARE CONSIDERED THE MOVERS IN THE MARKET, RODE THIS RALLY JUST WITH A HEDGED POSITION DURING THAT PERIOD, THEY WERE NET SELLER MOST OF THE TIME DURING THAT PERIOD.
AND FII’S ARE NOT LOOKING TO SAVE MARKET FROM A CRASH AS THEY ARE KEEPING THEIR HEDGE POSITION FOR LONG TIME.
WHEN DII’S WERE RESPONSIBLE FOR THE RALLY, THEY HAVE TO SUSTAIN THE LEVELS, BUT THEY NEED RETAILERS TO INVEST MAXIMUM TO SURVIVE, WHICH IS NOT POSSIBLE FOR GENERAL PUBLIC TO KEEP INVESTING MORE AND MORE IN MUTUAL FUNDS. AND WITHOUT THEIR HELP DII’S CANNOT MANAGE TO STAY AT A LEVEL AS THEY DON’T / CAN’T KEEP ENOUGH CASH BECAUSE OF SEBI GUIDELINES.
( responsible excuses and safety in next topic)
