Market View for week 16-20 Dec:

Bears have taken strong control of the market through-out the last week. Market fell consecutively for 5 days.

Nifty has support at in the range 6150-6170. If nifty holds this support on Monday, it is likely to bounce back to intermediate resistance level of 6230. This can happen in 3-4 trading sessions. In a very short term we can expect a small upward move in the week to come.

If this support 6150 is broken on closing basis, we can expect Nifty to move down. The next strong support is in the range of 6090-6110.

However Nifty is in upward momentum in the medium term. Small pullbacks downward can be used as buying opportunities by investors. Traders should use small moves on either side to go long or short. Be stock specific. In these market conditions, earn money on both sides.

Recommendations of the week:

IDFC: Technical Chart of IDFC is suggesting that it is moving further down. Short Sell IDFC near 104 (Future Price) for target of 100. Maintain stoploss at 105.50. Trade this stock for profit potential of 4% during the week to come. 

M&M: Irrespective of weak market conditions  Mahindra & Mahindra has shown strength. Chart is suggesting that it is going higher. Buy M&M near 954-955. Target is 975 and stoploss is 950. Trade this stock for profit potential of 2% during the week. 

TATASTEEL: It has come near support area of 410. Put stoploss near this area. Buy Tatasteel near 418 for target of 430. This gives profit potential of 2.8%.

For any clarifications on these recommendations , you may mail us on support@bonvista.in

5 actions retail investor should take in falling market

Last few weeks Indian economy has seen mayhem in terms of equity market movement southwards. There has been substantial movement (up or down) in all major indicators i.e. equity indexes such as Sensex, Nifty, Currency Indexes such as USD-Rupee, Precious metals such as Gold and Silver, Bond yield etc. They are interlinked and will make each other move.

What the retail investor should do in such a situations? We have come up with 5 actions that one can take about his investments in such volatility.

1.        ULIP(Unit Linked Insurance Policies)- If your money is held in equity or equityoriented fund and you are near (up to 1 year) the maturity or withdrawal then you are due for action. Your priority is to protect the interest earned on investment so far. Most ULIP have different fund options such as Equity, debt and money market or combination of them You should switch them from Equity to Money Market (Liquid) fund. While switching from equity to liquid, one should do so near high of broader markets.

2.       Shares: Unless you are ultra-long (more than 5 years) term investor, you are due for action. Most shares fall in price during fall in broader market. So sell your holdings near high and wait patiently for markets to bottom out. You may buy same shares (provided they are fundamentally sound) near bottom again. (Most retail investors do exactly opposite-Buy near high and Sell near low) 

3.       EquityMutual Funds (MF)- Investors tend to withdraw from MF when the markets are falling. As a result the fund faces pressure to perform. If you are not willing to hold the investment for long term or you are planning to withdraw from fund in near future, it is better to withdraw from equity fund. Alternatively you can switch the funds to safer options like liquid fund.

4.     Silver & Gold: It is possible when equities not performing, gold & silver are doing well. Focus on these investment alternatives by way of ETFs, Physical purchase or through futures.

5.     Short Term Alternatives: You may switch to short term investment alternatives if you have expertise. You can earn in falling markets by way short selling in equity orcommodity in F&O. You can temporarily park amount available in liquid funds, and s switch to equity when you fill markets are reversing.