The markets tanked about 1.3 pc. After 5 weeks of solid up move, this correction was much needed and healthy. Let us try ad see the road ahead for the markets.
1. The up move which started from 5477 can extend to 6350, 6500 or 7000. The first leg got over at 6229 and this is the correction to the move from 5477 to 6229. The markets can halt at 5942, 5853 or 5765. Only below 5627, the rally has ended.
2. The prices of crude oil have stabilized at lower levels and gold imports are also slowing down. This will help the economy and the current account deficit.
3. The Gilt prices have come down to 7.1 pc down from a high of 8.9 pc about a couple of years ago.This will help the Government lower the borrowing costs.
4. Looking at the Open Interest, Expiry is expected at around 5950- 6050.
5. Larsen and Toubro came out with poor results but its Order Book has improved. The current correction is a good chance to add the stock.
6. The current fall has all the characteristics of correction and not a fresh down move. This may well be the last chance to accumulate good stocks before a final blow out rally.
7. In our statistical analysis at the begininng of the month, the range provided was :
The moves could play out as:
1. Up in the beginning of the month, then highs of around 6300 and settle down near 6000.
2. First a down to 5600-5700, then a close to around 6100 levels.
We stopped at 6229. So, the number 6000 becomes a key number and there is a lot of open interest bulit around this umber.
8. The Monsoons have almost reached Kerala. A good monsoon is the next trigger for the markets to move up.
This is the time to add good quality stocks. The time to reap the harvest would come in after the monsoons around September.
1. The up move which started from 5477 can extend to 6350, 6500 or 7000. The first leg got over at 6229 and this is the correction to the move from 5477 to 6229. The markets can halt at 5942, 5853 or 5765. Only below 5627, the rally has ended.
2. The prices of crude oil have stabilized at lower levels and gold imports are also slowing down. This will help the economy and the current account deficit.
3. The Gilt prices have come down to 7.1 pc down from a high of 8.9 pc about a couple of years ago.This will help the Government lower the borrowing costs.
4. Looking at the Open Interest, Expiry is expected at around 5950- 6050.
5. Larsen and Toubro came out with poor results but its Order Book has improved. The current correction is a good chance to add the stock.
6. The current fall has all the characteristics of correction and not a fresh down move. This may well be the last chance to accumulate good stocks before a final blow out rally.
7. In our statistical analysis at the begininng of the month, the range provided was :
The moves could play out as:
1. Up in the beginning of the month, then highs of around 6300 and settle down near 6000.
2. First a down to 5600-5700, then a close to around 6100 levels.
We stopped at 6229. So, the number 6000 becomes a key number and there is a lot of open interest bulit around this umber.
8. The Monsoons have almost reached Kerala. A good monsoon is the next trigger for the markets to move up.
This is the time to add good quality stocks. The time to reap the harvest would come in after the monsoons around September.
Nishit, I follow on your articles, even Subhankar refers to some of your articles. Looking forward, if you can name some stocks, which you feel should make the list as "Good stocks" it will be really be a big guidance! Thanks Nishit.
ReplyDeleteAwaiting your response.
Regards,
Digambar