The New Year has begun well. The foreign institutions have poured in 3500 crores and the domestic institutions have poured in 4500 crores. On days when FIIs are major sellers, the domestic funds step in a big way. Do you know why?
The Government is offloading almost 20000 crores of shares in the next few weeks before the budget. This includes the NTPC divestment which will net almost 9000 crores. Its in the government's interest to keep the market propped up. If no major upheaval occurs then the government will ensure that there are no sharp falls.
The Indices have stopped moving now, and its the mid caps and the small caps which are jumping now.
Its time to keep track off all the junk in the portfolio and get rid of them. The supports for the markets come at 5192 and 5100. 5080-5100 is a very strong support for the markets and it is unlikely that these will broken. After that the supports come in at 4960 range.
Now, is a good time to add Gold as the prices have stabilized.Crude oil is shooting upto 80 dollars a barrel. Usually one ounce of gold is equal to between 10-20 barrels of oil. When oil rises, gold will also rise.
The below link is very informative.
The mid caps are running away and some good mid caps could be Shri Renuka Sugar above Rs 242, Bharat Bijlee at current prices.
The markets could come down early next week to test their supports ad that may be a good time to add a few stocks for short tem trading.