We had one more 75 Bps rate hike from fed and we also had one more day of sharp sell off in US markets. Our markets are doing better but how long will be outperform to this extent is anybody’s guess. As, we live in a global scenario, if other markets fall hard, we cant sustain for too long (looking at the history so far)
But, the other scenario currently is such – Global markets have already fallen too much , so there is also a possibility of sharp reversal there and our markets inching to all time highs.
So, what’s your plan in both scenarios? one – our market going to sub 16k levels , the other to all time highs
USDINR has sort of given a BO above 80
Would be interesting to see how bearish banks get on this…so far 600-700 points downmove was seen
Needs to see if 40k holds or not
IT , i think , is in support zones now
If the market is going to sub 16K level it is definitely a buy/Accumulate. Wish it does.
If it goes to all time highs – do the reverse of SIP instead of buy sell in small quantities and bring down your average cost.
Disc: My personal views
Buy for long term if index falls, trade for short term if it remains like this or goes high
I don’t think Indian markets will fall as much as its global peers. The RBI and Indian Government are in no hurry to bring inflation down in the medium term, which means no aggressive rate hikes. Increasing rate hikes by the Fed also means a cool down in commodity prices, which is also a big plus on the imported inflation front. Most of the inflation pressure in the US and Europe is due to energy prices. So, everything else remaining same, we can expect the RBI to maintain a balance between growth and inflation and the India markets to do well.
That being said, sectors like IT and pharma, which have a greater exposure to US and Europe markets, can be expected to underperform.
Sell cash secured 16000puts dec expiry at 168.
If it comes there I will convert it to bees.