Shares market fell sharply today to touch an intraday low of 16,838 at BSE Sensex. The markets were going through the fear of debt crisis spreading further. It recovered some part due to buying seen in auto sector. But largely shares market remained volatile and traded in narrow range. The Sensex finally ended 236 points lower to close at 16883 and Nifty ended at 5069 down by 80 points.
Shares market across Asia were struggling and global worries contributed a lot to the fall of markets today. Though, this fall doesn’t come as a surprise but at the end, it added fuel to the already raging fire in the shares market.
Shares market also had to digest the downgrade of India’s growth by Macquarie, which also had a negative impact on it. Shares market has been trading in this fashion for some time and short term bets are not paying off.
This is an ideal time for sit and watch along with cherry picking the quality stocks. Stocks like Cipla are very good for long term portfolios and investors with long term horizon can easily shoot big birds. Lot of large cap stocks is available at discounted price and investors can take this opportunity to build their portfolios.
Shares market in last one year has given a very clear message that they are not meant for just ‘short term bets’. Investors need to have at least medium term vision and an eye for quality stocks. Traders can generate good returns even in falling market but in that case, one need to first invest in self and learn Technical analysis to understand shares market patterns.
Investors should either invest in quality large cap stocks or mutual funds with minimum three to five year vision rather than chasing stocks or market movements.
Shares market is a very good place to create asset for long term and traders should be flexible enough to adapt to the current shares market trend. Current shares market scenario has created too much of uncertainty and riding that may not be easy for all investors.
Shares market is best for informed investors and worst for uninformed investors.
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