The Markets rallied on hearing the FED will not halt Quantitative easing and fell on the RBI policy. The markets closed up 2.4 pc for the week. Let us look at the Technicals and Fundamentals.
Fundamentals:
1. With easy liquidity on tap, as long as FIIs buy, the markets can go up. There were 2 main irritants, Syria and the FED stopping the easing.
2. The drama over shut down in US over spending and H1 Results can be negative for the markets.
3. The RBI has made it clear for the moment, it has done what it could have done. No more cues at least in the short term from the RBI can be expected.
4. The market may move sideways for sometime in the absence of any cues.
Technicals:
1. The markets have gone up much above the 80 pc retracement of 6229-5118. This could mean we could correct a bit and head for new highs.
2. Targets on the down side could be 5900, 5750, 5630 and 5509.
3. Below 5866, we can be sure of a deeper fall to the above levels.
The Strategy should be to stick to Quality Stocks which can be held even if the market collapses. Do we have the pre-election rally or post-election rally.
I would rather prefer a post election rally for obvious reasons.
Fundamentals:
1. With easy liquidity on tap, as long as FIIs buy, the markets can go up. There were 2 main irritants, Syria and the FED stopping the easing.
2. The drama over shut down in US over spending and H1 Results can be negative for the markets.
3. The RBI has made it clear for the moment, it has done what it could have done. No more cues at least in the short term from the RBI can be expected.
4. The market may move sideways for sometime in the absence of any cues.
Technicals:
1. The markets have gone up much above the 80 pc retracement of 6229-5118. This could mean we could correct a bit and head for new highs.
2. Targets on the down side could be 5900, 5750, 5630 and 5509.
3. Below 5866, we can be sure of a deeper fall to the above levels.
The Strategy should be to stick to Quality Stocks which can be held even if the market collapses. Do we have the pre-election rally or post-election rally.
I would rather prefer a post election rally for obvious reasons.
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