Sunday, November 30, 2014

Crash in Crude Oil prices lead the markets higher

The markets again had a very good week, topped off by the fact that crude oil prices crashed on Friday on OPEC announcement of no cut in production. All eyes are on the RBI Governor on Tuesday.

1. The markets rallied 1.3 pc on the back of FII inflows. FIIs have pumped in nearly 11000 crores in the markets in the month of November.

2. The RBI meets on Tuesday and there may be some correction, if there is no cut in the Interest Rates.

3. The Parliament session has begun and the first week was not at all promising. If this trend continues, then that may be a reason for correction.

4. Now, is definitely not the time to add more shares but focus should be on part profit booking. The same shares can be bought back at lower prices as and when the correction comes.

5. The Gilt funds are continuing with their fantastic returns. If a rate cut does materialize then part profits can be booked there too.

6. Technically, the markets had a target between 8450-8650 for this up move. How the markets react from here will tell us if there is going to be a 100 points correction or a 300-400 points correction or whether the up move will continue to 9000.

The focus now should be purely on booking part profits. Now, is not the time to make fresh purchases. Markets always give an opportunity and they surely will give an opportunity to buy.

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