The Markets have been consolidating for the past few days. They closed 1.7 pc down for the week but I expect them to break out of the range soon. Let us explore why this can be a reality.
Fundamentals:
1. The FIIs have been buying heavily in July. They have bought equity worth 6500 crores so far. This has eased the selling pressure on the stocks.
2. The global commodity prices have remain subdued. Crude has settled around the 100 dollars a barrel mark. India which imports almost 80 pc of its crude, is the major beneficiary of this.
3. Global negative events, especially in Europe are taking a breather.
4. Post the Presidential election on June 19th, there are expectations of major reforms. FDI in Retail, GAAR norms easing and the Vodafone tax case are a few of the reforms expected.
5. The progress of Monsoons is another key factor in determining the direction of the monsoons. Monsoon activity has revived over the past couple of weeks.
Technicals:
1. As per Elliot, the market is in the 3rd Corrective upmove from 4532. A was 4532 - 5629. B was 5629 - 4770.
2. The Leg C has completed the first 2 legs. C1 was 4770-5190 = 420 points, C2 was 5190-5141 = 149 points.
Leg C3 has completed the 1st wave from 5041 - 5349 = 308 points. 2nd wave will have targets 5231, 5195, 5158.
It is a buy on dips markets. For those interested in stockpicks which have done pretty well, we have the Cherry Picks.
Fundamentals:
1. The FIIs have been buying heavily in July. They have bought equity worth 6500 crores so far. This has eased the selling pressure on the stocks.
2. The global commodity prices have remain subdued. Crude has settled around the 100 dollars a barrel mark. India which imports almost 80 pc of its crude, is the major beneficiary of this.
3. Global negative events, especially in Europe are taking a breather.
4. Post the Presidential election on June 19th, there are expectations of major reforms. FDI in Retail, GAAR norms easing and the Vodafone tax case are a few of the reforms expected.
5. The progress of Monsoons is another key factor in determining the direction of the monsoons. Monsoon activity has revived over the past couple of weeks.
Technicals:
1. As per Elliot, the market is in the 3rd Corrective upmove from 4532. A was 4532 - 5629. B was 5629 - 4770.
2. The Leg C has completed the first 2 legs. C1 was 4770-5190 = 420 points, C2 was 5190-5141 = 149 points.
Leg C3 has completed the 1st wave from 5041 - 5349 = 308 points. 2nd wave will have targets 5231, 5195, 5158.
It is a buy on dips markets. For those interested in stockpicks which have done pretty well, we have the Cherry Picks.
Diesel prices will go up after Presidential election
ReplyDeleteHi Nishit,
ReplyDeleteWhat system do you use for the buy & sell signals on Nifty? I find them quite accurate.
Arvind