The Nifty gained another 1.9 pc for the week. Improved earnings, positive reforms from the Government all helped the markets go higher. Let us try and see what is next for the markets.
2 of the 3 events which were mentioned in the last week post are out of the way. The Credit policy remains as the next trigger.
In the post 2 weeks back, we had spoken of the probable range for the Nifty, it was 5880-6080 we are at the higher end of the range and I expect the lower part of the range to be tested.
Why do I feel the lower end of the range will be tested? This is because the news related triggers are out of the way and there are still 7 trading sessions to go before the Credit policy is announced. Typically, in the week before Nifty expiry, the market reverses direction to the trend it was following for the month. The trend has been up this month so I expect a smaller correction which would be healthy for the markets.
Typically markets have made a top sometime in early Jauary, around March after the budget or in May June time frame. Let us see how the markets pan out. A correction till 5815 will be galthy before the next up move.
The markets are now followig a typical bull market pattern where the beaten down sectors suddely start moving. Oil and Gas, IT sector are the ones which were written of the market. They will be under owned by the market ad they will rally.
The big money will be made and lost in the market during such times. Hence the quality of stocks one owns is the key. Please stick to good quality stocks. I would use the coming dip if it materializes as a chance to add more of the good quality stocks.
2 of the 3 events which were mentioned in the last week post are out of the way. The Credit policy remains as the next trigger.
In the post 2 weeks back, we had spoken of the probable range for the Nifty, it was 5880-6080 we are at the higher end of the range and I expect the lower part of the range to be tested.
Why do I feel the lower end of the range will be tested? This is because the news related triggers are out of the way and there are still 7 trading sessions to go before the Credit policy is announced. Typically, in the week before Nifty expiry, the market reverses direction to the trend it was following for the month. The trend has been up this month so I expect a smaller correction which would be healthy for the markets.
Typically markets have made a top sometime in early Jauary, around March after the budget or in May June time frame. Let us see how the markets pan out. A correction till 5815 will be galthy before the next up move.
The markets are now followig a typical bull market pattern where the beaten down sectors suddely start moving. Oil and Gas, IT sector are the ones which were written of the market. They will be under owned by the market ad they will rally.
The big money will be made and lost in the market during such times. Hence the quality of stocks one owns is the key. Please stick to good quality stocks. I would use the coming dip if it materializes as a chance to add more of the good quality stocks.
23rd Jan
ReplyDeleteDear Sir,
Some typo error in your NIFTY call
you say buy generated at 6000 reverse at 6080 / 6100.
Thanks Shyam
ReplyDelete