How have the markets fared in April?

The month of March has drawn to a close. Let us see how the markets have usually fared in the month of April. March ended with a marginal loss of 0.2 pc which was ironically the average loss in the month of March.

1. The month of April has almost always seen a loss of at least 2-3 pc below the March close. This implies that 5500-5550 should be tested at least once.

2. The month of April has been positive 5 times and negative 7 times in the past 12 years. In the recent years, April has become a positive month. The average gain in the month of April has been around 1.5 %. This leaves us with the targets of 5750-5800.

3. The upside seems limited for the month of April. The range which seems to emerge is 5500- 5900 at the upper side. The bias seems to be flat to negative.

4. If the up move which has begun continues then we may see 5800-5900 before coming lower during the results season.

5. It is a new month and a new financial year. The Gilt rates have gone back up to 7.96 % to 7.99 %. This is another opportunity to enter Gilt Funds.

Overall, the markets direction seems sideways for the moment with a negative bias. It is a buy on dips markets with good fundamental stocks.