In last many articles, We have discussed that because of many National and International issues , the market is in consolidation mode with negative bias and any fall below 200 DMA will prove quite negative for the market. The Trade War started by President Trump has provided the reason for panic selling in the Global market. Increasing political turmoil and ever increasing fraud cases in PSU Banks led to fall in risk appetite of investors. Though , the fundamental of economy and the corporate earnings suggest improvement, the market is ignoring the data and the spoiled sentiment has triggered series of fall.
Technically , the market can make new lows and the doors for 50% retracement of rise can be achieved which is placed near to 9500 and 9200 – 9000 range. The market has tendency to over shoot in both the direction. Under the circumstances, it is very important to protect the capital and invest wisely. The selection of the stock is the most important factor in the coming year. At some point of time , the market will look cheap from valuation view point and that will be the zone from where buying can emerge.
In last many articles, We have discussed that because of many National and International issues , the market is in consolidation mode with negative bias and any fall below 200 DMA will prove…