The Q3 results so far have been average to good and the markets have not reacted adversely to the Results. In the week gone by the markets have gained 1.5 pc to close higher. Over the past few weeks, a few fundamentals have changed to support the markets. Let us take a look at them.
1. A key takeaway of the results is the superb performance by the IT sector and average performance by the Banks.
2. Inflation has fallen due to lower food prices and becuase of that there may be no rate hike in the January RBI policy. As a result of which bond yields have come down 8.62 % for the 10 year G-Sec.
3. The Gilt funds have give a good rise in the past few weeks. A lower interest rate regime also means that this is the last option to lock into tax free bonds.
4. Politics now remains the only major uncertainty for the markets. The Government is looking to borrow less this fiscal ad the rupee has stabilized in the 61-62 range.
5. All this implies that the markets will continue to meander in the 6130 - 6350 range as seen last week also. unless we have a major breakout or breakdown this range will continue.
6. 6130 - 6358 and beyond this 5900 and 6420 are the key breakout points to watch out for.
7. The markets may continue to drift in the absence of major triggers. The US Jobs data was poor which also implies that the taper will be at a slower pace giving support to the emerging markets.
8. The FIIs have continued to support the markets albeit at a lesser pace with purchases of 1874 crores so far.
In a nutshell, it is basically wait and watch and add quality stocks at declines. I feel we may still get a small buying window before a final rally.
1. A key takeaway of the results is the superb performance by the IT sector and average performance by the Banks.
2. Inflation has fallen due to lower food prices and becuase of that there may be no rate hike in the January RBI policy. As a result of which bond yields have come down 8.62 % for the 10 year G-Sec.
3. The Gilt funds have give a good rise in the past few weeks. A lower interest rate regime also means that this is the last option to lock into tax free bonds.
4. Politics now remains the only major uncertainty for the markets. The Government is looking to borrow less this fiscal ad the rupee has stabilized in the 61-62 range.
5. All this implies that the markets will continue to meander in the 6130 - 6350 range as seen last week also. unless we have a major breakout or breakdown this range will continue.
6. 6130 - 6358 and beyond this 5900 and 6420 are the key breakout points to watch out for.
7. The markets may continue to drift in the absence of major triggers. The US Jobs data was poor which also implies that the taper will be at a slower pace giving support to the emerging markets.
8. The FIIs have continued to support the markets albeit at a lesser pace with purchases of 1874 crores so far.
In a nutshell, it is basically wait and watch and add quality stocks at declines. I feel we may still get a small buying window before a final rally.
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