Tora Tori Wealth wishes you a very Happy Diwali and Samvat!
This festive season, we shall look at where the Benchmark Index Nifty 50 is placed and what is in store for the Indian markets. In spite of negative sentiments lurking in the markets—backed by anxiety over a possible recession in major global economies and inflation being a major concern on the domestic front—we strongly believe that Indian markets are poised to stand out among the major global indices as one of the best-performing markets of this decade.
A quick snapshot of the performance of Nifty compared with major global indices should make a strong case for our view. What falls the least during a corrective phase will become the outperformer in a rising market. While in the short term this view may be questionable, there is no doubt that India will tide over the corrective phase much smoother and sooner. While we may look for reasons to support this view, markets have always shown us that price moves first, and reasons eventually follow. Price action discounts everything.
However, let us not make the mistake of calling the current levels or recent swing lows the bottom. We are most certainly in for some turbulent times in the Indian markets, where price correction is accompanied by the more painful time correction, which can bring a lot of frustration for any investor. But we believe this must be looked at as an opportunity to invest in quality portfolios rather than getting jolted or shaken out of the markets. All we need to do is position ourselves to invest in a manner that allows us to ride the strong rally that the Indian markets are poised to witness.
Chart View of Nifty
Although the price seems to be in a cluster, it is just a matter of time before the range is broken for a move up. However, this entire price and time correction may stretch for a couple of quarters before the uptrend resumes. Having faith in the pre-defined investment strategies, along with the growth story of India, will play a key role.
Chart View of Nifty vs Bonds, Gold, and USD
A quick snapshot of the Nifty price action plotted against Gold, Bonds, and USD is encouraging for investing in Indian equities. We must plan our investments both strategically and tactically to absorb any volatility and sharp corrections in the short term.
Disclaimer: This report is for private circulation only and should be treated as educational material, not as professional advice to buy or sell any instrument. The recipient/reader is solely responsible for making their own investment decisions. If you choose to engage in such transactions, with or without seeking advice from a licensed and qualified financial advisor or entity, then such decisions and any consequences arising therefrom are your sole responsibility.
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