The Markets gained over 2.3 % to close at 5215. The markets are now heading into a cluster of resistances which will determine if the up move continues or we are going back into a trading zone. Let us try and examine each of these factors.
Technicals:
1. The Market is in the Leg C of the corrective up move started at 4532 in Dec'11.
C1 was 4770- 5348
C2 had 3 legs A, B and C
A was 5348 - 5169
B was 5169 - 5257
C was 5257 - 5032
C3 commenced from 5032 and we are near the end of the wave C3 -1.
This is one wave count.
Another could be C2 - A 5348 - 5032, B from 5032 - max 5284 and C to re-test 4950 - 5032.
How does one really play this?
5300 is the outer limit beyond which we will test 5450-5630. Buy either above 5300 or in the area 4950-5100.
The week should start on a bright note with the global markets hitting the highs.
Fundamentals:
1. The Monsoons continue to be weak which should help the sugar sector.
2. P Chidambaram has taken over as the new FM and its time makes a move on the policy front. Else we are likely to remain in a sideways market.
Bottom line: Buy above 5300 and also below 5100. In between enjoy the rains. For those interested in individual stocks, we have the Cherry Picks by Lakshmi and myself.
Technicals:
1. The Market is in the Leg C of the corrective up move started at 4532 in Dec'11.
C1 was 4770- 5348
C2 had 3 legs A, B and C
A was 5348 - 5169
B was 5169 - 5257
C was 5257 - 5032
C3 commenced from 5032 and we are near the end of the wave C3 -1.
This is one wave count.
Another could be C2 - A 5348 - 5032, B from 5032 - max 5284 and C to re-test 4950 - 5032.
How does one really play this?
5300 is the outer limit beyond which we will test 5450-5630. Buy either above 5300 or in the area 4950-5100.
The week should start on a bright note with the global markets hitting the highs.
Fundamentals:
1. The Monsoons continue to be weak which should help the sugar sector.
2. P Chidambaram has taken over as the new FM and its time makes a move on the policy front. Else we are likely to remain in a sideways market.
Bottom line: Buy above 5300 and also below 5100. In between enjoy the rains. For those interested in individual stocks, we have the Cherry Picks by Lakshmi and myself.
No comments:
Post a Comment