I think curde trading in speculative mood. what do you think? and can nifty goes up to 4900 this week or 4200?

Question

I think curde trading in speculative mood. what do you think? and can nifty goes up to 4900 this week or 4200?

Answer 1

The equity markets are amongst the best hedges against inflation.  It all depends on when you buy and when you sell.

Let's say we expect the nifty to touch 4200, then obviously it is expected that a reasonable investor should be buying as the nifty level and stock prices fall.  However, if it goes up to 4900 then a resonable investor would be selling his stock holdings as the nifty and stock prices move up to that level.

At present, the speculative or otherwise price of crude is being used as the reason which would cause inflation to go up further.  Which in turn is expected to cause hightened expenses for everyone; thereby reducing the net profits of the corproate entities at large and causing them to reflect a reduced EPS, causing the P/E multipliers to move up to unreasonable levels to sustain the present stock price levels.

Now as long as you buy low at the lower levels and sell at the higher levels you should be okay.

Happy investing.

Akash

http://www.narachinvestment.com

Answer 2

The possibility is more towards 4200 but there will be strong resistance for that. But the volatility will continue as global fear on crude is growing. Recession is one of the few ways to cut down the demand for oil. there will be pain and bloodbath in the equity markets. But good time for long term investor to choose his cherry picks

Answer 3

Crude definitely is reeling now.  Markets are concerned only about that.

But Goldman sachs has rightly pointed out that by the end of this year crude touches the value of $160

So with such high inflation and crude prices, markets are bound to come down now.