Sunday, September 7, 2014

Upmove continues; FII flows continue

The markets gained another 1.7 pc. The markets continue to make a steady upmove with minor corrections on the way. Let us see if  this week has brought any development in the current move.

1. The GDP numbers and auto car sales which were excellent aided the up move to new all time highs. markets are all about sentiments and sentiments continue to improve.

2. FII were huge buyers in the first week of September almost buying 5000 crores worth of shares. As long they continue buying, corrections would be short lived.

3. Another key development during the week was that under recovery on Diesel has come down to 8 paisa or almost disappeared. This means the Government burden of subsidies on Diesel and Petrol stand removed. This will help in meeting the fiscal deficit targets.

4. The next week surely will have the announcement of the election schedules in key States. Maharashtra is economically very important as the funding comes from Maharashtra.

5. Technically, the markets look to hit 8200-8400 before any significant correction. Another key feature of this rally is that the mid caps are now flying. As mentioned, its all about sentiment and I would not be surprised if we hit all time highs around Diwali before forming a short term top.

6. What does an Investor do now? Invest in quality Stocks which are not overpriced. else one may again get stuck with overpriced penny stocks as in every bull run.

Overall, its time to consolidate and look at part booking of profits., Finally money earned is not notional profits but the money taken home.

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