Our markets have been performing horribly, completely under performing it’s peers and specially the west. There is hardly any buyers out in the markets due to all the negativity.
On the positive side, each fall on this market is giving a very good entry point to long term investors where one can cherry pick good quality stocks on cheap valuations and hold tight till markets rebound in future. I don’t recommend trading short term at all. A lot of people are buying into the markets for 2-3 months perspective, well please don’t. This free falling market is not the right time to buy with such a short duration. Invest into the market at current levels and using each declines to buy some more ONLY if you are going to stay invested with a long term horizon, atleast 24-36 months.
There is a lot of uncertainty in the markets and it is going to remain so lackluster for a few months more. The best part for this consolidation move in the lower levels is as each month is passing, the investors are getting their salaries from where they could fetch some money to buy good quality stocks on these prices. I shall advice investors to keep buying into good quality stocks on every declines and have a 36-60 months view, you will definitely make a lot of money. The only risk to your return is if you’re not buying into the right company. Stick to good quality stocks and avoid stocks you have no clue about.