Markets Next Week: A Good Opportunity To Sell On Rally

Posted By:
Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    It was a historic week once again for the markets with the Nifty hitting the 10,000 points for the first time on Wednesday. However, there was selling pressure on Friday, which dragged the Nifty below the 10,000 points, only for recovery later in the day.

    Markets Next Week: A Good Opportunity To Sell On Rally
    Interestingly, investors have begun realizing that the markets are heavily over priced at these levels. We seen the same on Thursday when after a stupendous rally to 10,100 points on Thursday, the markets gave up all gains and the Sensex ended with losses. At these levels buying stocks is a highly risky proposition.

    The p/e multiple of Sensex stocks has crossed the long term average for these Sensex stocks by a distance. We have suggested a few risk free stocks that you can buy
    This week a positive development for the markets was the political developments in Bihar. It is widely believed that the support of BJP for the Nitish Kumar government would strengthen the election prospects for the BJP in the 2019 general elections. This boosted the markets on Thursday, only to see selling pressure emerge.

    Shares in companies that declared good results continued to attract buying support. HDFC Bank and Reliance Industries which have propelled the markets in the last few weeks continued to push the markets higher. Dr Reddy's Laboratories, which reported a dismal set of results saw its share price tank.

    Going ahead it would be sensible if investors exercise caution. Markets are looking dangerously overvalued and one bad event could lead to a sharp and sudden collapse in the markets. It maybe a good idea to stay invested in select companies that declare a good dividend.

    Read more about: sensex nifty
    Story first published: Saturday, July 29, 2017, 7:34 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more