After a rally of 4 pc in the first week of March, the markets continued to consolidate around the 6500 mark for 1 more week. The markets are taking a breather after a move to new lifetime highs.
1. The Government mopped up almost 10000 crores through the sale of ETF in PSUs and the Axis Bank stake sale. This sucked out some of the liquidity from the markets.
2. The Opinion Polls continue to put the BJP ahead and this is what is keeping the markets up. The capital Goods and the Infrastructure space is coming into the picture slowly.
3. The markets hit a bottom on the 4th of Feb 2014 and then have been on a up move for about 32 sessions. April may well be a month of correction after a up move of about 650 points in 32 sessions.
4. If the markets correct, they would be correcting the move from 5933 to 6575. targets on the downside would be 6424, 6330, 6254 and 6179. Considering that the markets are so bullish, we may not go down below 6330. Also, the 6350 have been the previous top many times and would now act as a solid support.
5. There are select stocks which are still available at good valuations. Godrej Properties, L&T finance, Sunil Hitech are a few which come to mind, where the risk reward ratio is favorable.
6. The next triggers for the markets will be the full year Results after the 10th of April. Till then, in the absence of major triggers the markets may keep drifting aimlessly. also, around 7-10th April, the last round of Opinion Polls will hit the wires before the freeze comes into the picture at the time of elections.
The next week may see the markets being held up to dress up the NAVs of Mutual funds as the year bonuses are dependent on them. I expect the early part of ext week to continue the buoyancy in the markets.
1. The Government mopped up almost 10000 crores through the sale of ETF in PSUs and the Axis Bank stake sale. This sucked out some of the liquidity from the markets.
2. The Opinion Polls continue to put the BJP ahead and this is what is keeping the markets up. The capital Goods and the Infrastructure space is coming into the picture slowly.
3. The markets hit a bottom on the 4th of Feb 2014 and then have been on a up move for about 32 sessions. April may well be a month of correction after a up move of about 650 points in 32 sessions.
4. If the markets correct, they would be correcting the move from 5933 to 6575. targets on the downside would be 6424, 6330, 6254 and 6179. Considering that the markets are so bullish, we may not go down below 6330. Also, the 6350 have been the previous top many times and would now act as a solid support.
5. There are select stocks which are still available at good valuations. Godrej Properties, L&T finance, Sunil Hitech are a few which come to mind, where the risk reward ratio is favorable.
6. The next triggers for the markets will be the full year Results after the 10th of April. Till then, in the absence of major triggers the markets may keep drifting aimlessly. also, around 7-10th April, the last round of Opinion Polls will hit the wires before the freeze comes into the picture at the time of elections.
The next week may see the markets being held up to dress up the NAVs of Mutual funds as the year bonuses are dependent on them. I expect the early part of ext week to continue the buoyancy in the markets.
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