Will the 200 DMA fort hold FII's selling pressure ?

2022年2月22日

As we have been seeing in the last couple of months, the FIIs have been selling heavy. It has been attributed to many reasons like Fed's policy tightening, Geopolitical instability, etc. Now that the markets have been correcting heavily in the US, the meme stocks, over hyped growth stocks and even TSLA has been taking serious beatings in the market. At the end of the day, markets are nothing more than slaves to earnings and dividends. While this was expected, many perma-bears including Jeremy Grantham has been insisting that if the fund houses needs a piece of action that's happening in the growth stocks and at a descent valuation, they ought to invest in emerging markets ( Same said by Ray Dalio, for asset allocation that he is planning to, though he is heavily inclined to china).

Now, given this Marco-economic context, will 200 DMA hold good for India ? or will it succumb to FII's selling ? Either way, It reminds me of warren buffet's fine piece of advise that , It makes more financial sense to buy a bad performing company at a good discount rather than a good company at higher valuation. If bears wins, fantastic then ! Its time for my stock shopping in the Indian market at the starting of a great discount.

This week's close would be a very critical for the markets.