Market on Jan 8, 2025

Daily Journal: GDP numbers this year may be lowest in the last 4 years. 6.4% may be the GDP growth estimates in FY25. US markets had a weak session yesterday. All the 3 indices closed in red. Futures are trading flat. US 10Y Bond Yield is at 4.6%. Brent Oil is at 77$. Dollar index remains above 108. Asian markets are mixed. Consider global cues as weakish for today. Consolidation continues in the Indian markets. Yesterday’s rally also got sold into and Nifty closed at the bottom end. As the virus is not considered new and fatal the weakness due to this reason has already stopped. The weakness in the economy and the expectation of weak Q3 numbers are leading to this consolidation. The short term investors keep booking profits often as they are seeing that H2 can be weak in terms of numbers. After a few weeks they will look at the FY26 numbers and then markets will become stable. That’s why I am saying that for short term traders, the best strategy in this market is to sell on the rise. For long term investors the best strategy is to buy on the dips. If you are both, you can use both of these strategies. Macro indicators like the US 10Y Bond Yield and Dollar Index are also rising. These move in the opposite direction of the Indian markets.