Investors set sights on US inflation data; Indian market on tenterhooks

Traders remained nervous ahead of the US inflation data due later in the day that will decide the course of the Fed’s tightening pace. With FII outflows worth $22 billion in the first five months of 2022 and still continuing, investors are a worried lot. Here are some of the tweets by the best minds of capital market that can give some ideas on what’s to be expected and what needs to be done.

Focus on US inflation

A market veteran PR Sundar (@PRSundar64), said US markets and Indian markets are worried too much about US Inflation than the US consumers are. In an another tweet, PR Sundar said: “Huge shorting is happening. Metals and Autos are recovering. Even IT is recovering a little. Problem is with Financials, HDFC, Kotak, Bajaj Finance are leading the fall. Nifty Future has to cross 16280 for bulls to get some energy.”

Ajay Bagga (@Ajay_Bagga), another market expert, warned: US CPI derivative markets are showing that May CPI will come at 8.5 per cent against the broad estimates of 8.2-8.3 per cent by various publications. And rising to 8.8 per cent in August and settling at 8 per cent in October . Markets have every reason to be VERY WORRIED. If these numbers are proved correct.”

Another widely followed veteran Ashwani Gujral (@AshwaniGujral6) said: “Nifty breaks 50 pc zone of 16300, look forward to 15700.”

Trading strategy

According to Raamdeo Agrawal of Motilal Oswal Finacial Services (@Raamdeo), “There is no other reason for FIIs to sell India except for the valuation gap. Either they have to accept the premium of Indian markets or they may wait for valuations to go down. We will have to wait and watch.”

In an advisory, D Muthukrishnan (@dmuthuk), a Tamil Nadu-based market independent analyst), tweeted “No stock can escape 50 per cent falls. Even Berkshire has corrected around 50%, four times in last 5 decades.

In an another tweet, he said: “Every investment style goes through both good and bad times. Consistently sticking to a style ensures that you reap the benefits when good time happens. Frequently changing the style may make you miss all good times and possibly can even make you go through all bad times.”

According to Vijay Kedia, (@VijayKedia1), “The key to success is how many stocks you have seen falling, and how many bear markets you have seen. “

Va Nagappan (@nagappanv), another avid market follower from Chennai, tweeted, “Many in the markets who followed asset allocation should be thankful to 2021-22 ; It provided lots of opportunity to book profits & settle their home/vehicle loans & be debt free. Hope they follow follow asset allocation in a disciplined manner & take advantage of 2022-23, too.”

Nikhil Kamath, Zerodha founder, (@nikhilkamathcio), said: “9 out of 10 times, when things don’t go your way, doing nothing is the best thing. In life and in mkts…”

Time to bet for long-term?

There are some voices advising investors pick stocks for long-term too.

Kishor Ostwal of CNI Research (@KISHOROSTWAL), tweeted, “Despite the recent rally the Citi Levkovich Index is still in #extreme fear category. “Investor sentiment is dangerously close to tipping into ‘panic’ territory. If the model stays at current levels, it suggests a “very attractive long-term entry point.”

Basant Maheshwari (@BMTheEquityDesk), one of the widely-followed experts, in a tweet said: “8 months and a range-bound market Next quarter onwards stocks showing earnings growth will be disproportionately bid up.”

Published on June 10, 2022