Sunday, January 12, 2014

Good Infy results fail to cheer the markets

The markets were down 0.6 pc for the week. Infosys Results were good, the stock went up and the markets corrected in the second half. Let us see what can drive the markets in the coming week.

1. Infy seems to be getting its groove back with Narayanamurthy back. They look to be at the upper end of the guidance for the full year which is a good news.

2. In the month of Jan, The FIIs have been net sellers for 3 days and interestingly the DIIs have become net buyers. The FIIs have purchased only 271 crores worth of shares so far and the DIIs have purchased about 3500 crores worth of equity.

3. The Technicals remain unchanged from last week and I expect 1 dip before a rally towards 6500-6800.

4. The political scene is fast changing and what seemed like a wave in favor of Narendra Modi is fast fizzling out. If the current trend continues we may be in for a hung Parliament and markets will tank in May.

5. The focus of the markets will now be on Q3 results. we seem to have got off to a good start, we need to see how the next set of results are.

6. The corrections have been shallow and the markets are building a base before the next up move. The year has not begun on a very good note.

7. The trade deficit has improved thanks to the curbs on Gold and Silver imports.

8. The RBI policy may not hike rates as the IIP data was poor.

All in all the markets have still not got out of the holiday mood and till they break out of the 6130 - 6358 range expect the markets to be range bound.

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