Fear/Greed

Looking into current Indian Market trends, I believe Investors are Greedy and at the same time fear about the current situation.

Three reasons:

• Nature of Economy-Long term looks very good
• Poor Earnings
• Liquidity moving out of Indian market

US bond yield are moving higher, Indications that FED going to increase the rate make liquidity flow out of India.

Looking into the below chart, I believe 7870-8050 remains a good support level for Nifty.

Last one year I see markets are falling only because of Fear, Its all started from Greece, Indian Banking sector, Br Exit, and now I hear Trump and Demonetization(which I believe has no effect)

From Finance movies/books, I came to Know whenever the market is fearful, there is high probability of investors making a very good return over the next two years(2008 crisis,recent Greece and Banking sector crisis have proven it).

I think, if you are looking for long term investments, it is better to invest in now in slices.

If you are a Short investments, I believe at least for the next two quarters Indian markets(Companies) show poor earnings

And if you are a Mutual Fund investor, I think there will be huge readjustment of portfolios, so check for the portfolio that has stocks which are reasonably valued.