The markets gained another 1.3 pc to touch 6200. There are several reasons why the markets can touch the previous highs and exceed them. Let us try and explore the probabilities.
1. The FIIs are continuously in the buy mode. The liquidity is propelling the markets higher. The DII selling is easily getting absorbed.
2. The Parliament is having its recess and will open only in the Monsoon session in the last week of July. This will ensure that there are no political storms to spook the markets.
3. The Monsoons are said to be on track.Looking at historical data and probability we should be having a good monsoon.
4. Inflation is down and due to this, the interest rate cuts will continue. This will lead the Banks and Interest rate sensitive stocks to new highs.
5. Crude oil is down and this will help the Indian economy. Gold prices continue downwards. This also implies lower imports. After the Indian gold demand sees lower prices then the buying frenzy will abate. The fall in Gold has been so sharp and so deep that I will we are unlikely to see a recovery in Gold prices before Diwali.
6. Every small dip is a buying opportunity and profit booking at every level is a must.
7. The PSU Banks have not yet rallied and say an Andhra Bank with a price of Rs 92 ad a dividend of Rs 5 offers a dividend yield of 5.5 % tax free.
8. The Gilt funds have given amazing returns of absolute 11 pc in the past 6 months. Their performance will peak in the next 1 year.
The strategy remains the same. Buying every dip ad booking profits at higher levels thereby lowering the cost price of the shares in the long term portfolio.
1. The FIIs are continuously in the buy mode. The liquidity is propelling the markets higher. The DII selling is easily getting absorbed.
2. The Parliament is having its recess and will open only in the Monsoon session in the last week of July. This will ensure that there are no political storms to spook the markets.
3. The Monsoons are said to be on track.Looking at historical data and probability we should be having a good monsoon.
4. Inflation is down and due to this, the interest rate cuts will continue. This will lead the Banks and Interest rate sensitive stocks to new highs.
5. Crude oil is down and this will help the Indian economy. Gold prices continue downwards. This also implies lower imports. After the Indian gold demand sees lower prices then the buying frenzy will abate. The fall in Gold has been so sharp and so deep that I will we are unlikely to see a recovery in Gold prices before Diwali.
6. Every small dip is a buying opportunity and profit booking at every level is a must.
7. The PSU Banks have not yet rallied and say an Andhra Bank with a price of Rs 92 ad a dividend of Rs 5 offers a dividend yield of 5.5 % tax free.
8. The Gilt funds have given amazing returns of absolute 11 pc in the past 6 months. Their performance will peak in the next 1 year.
The strategy remains the same. Buying every dip ad booking profits at higher levels thereby lowering the cost price of the shares in the long term portfolio.
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