The markets corrected about 0.4 pc last week. A Delayed markets and a lack of clear direction from the Government weighed heavy on sentiments. Let us try and explore what could be the factors influencing the markets.
Technicals:
1. We are in the Leg C of the corrective up move. This has targets ranging from 5700 to 5900.
C started at 4770. There are 2 possibilities here.
a. C1 4770 - 5190
C2 5190 - 5041
C3 -1 5041 - 5348
C3 - 2 5348 - ???? can be 5231, 5195 or 5159 or max 5102.
b. C1 is 4770 - 5348 and C2 is currently ongoing with targets of 5127, 5059 and 4990.
Technically, wait for the breach of 5100 to commence fresh buying.5100 is a strong support area.
Fundamentals:
1. Poor monsoons are already driving up food grain prices. The chances of a rate cut are diminished. Sugar stocks are expected to do well. The bumper harvest of previous years will help India in tiding over this drought.
2. The markets will not move up till there are further steps on the economic reform front. The Presidential elections are out of the way. It is now time for the Government to deliver.
3. Worries on the European front are resurfacing. One needs to keep a look out for the developments in Spain.
The Sriram Transport NCD is due soon opening on July 26th 2012. I will post a detailed review on the 25th of July.
For those interested in stock picks, I have Lakshmi and mine Cherry Picks.
Technicals:
1. We are in the Leg C of the corrective up move. This has targets ranging from 5700 to 5900.
C started at 4770. There are 2 possibilities here.
a. C1 4770 - 5190
C2 5190 - 5041
C3 -1 5041 - 5348
C3 - 2 5348 - ???? can be 5231, 5195 or 5159 or max 5102.
b. C1 is 4770 - 5348 and C2 is currently ongoing with targets of 5127, 5059 and 4990.
Technically, wait for the breach of 5100 to commence fresh buying.5100 is a strong support area.
Fundamentals:
1. Poor monsoons are already driving up food grain prices. The chances of a rate cut are diminished. Sugar stocks are expected to do well. The bumper harvest of previous years will help India in tiding over this drought.
2. The markets will not move up till there are further steps on the economic reform front. The Presidential elections are out of the way. It is now time for the Government to deliver.
3. Worries on the European front are resurfacing. One needs to keep a look out for the developments in Spain.
The Sriram Transport NCD is due soon opening on July 26th 2012. I will post a detailed review on the 25th of July.
For those interested in stock picks, I have Lakshmi and mine Cherry Picks.
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