On the back of the ECB stimulus announcement, the markets rose 3.7 pc to close at their highest levels. Let us try and see what further positive triggers can be there for the markets.
1. The FIIs have been heavy buyers and have bought stocks worth 7000 crores in the last 6 trading sessions. This is reflected in the large caps going up.
2. If we extrapolate the previous up move from 7723 to 8627, we get a target of 8965 or 9523. we will reach there but after corrections.
3. In spite of the market going up on Friday, the Advance Decline ratio was negative. Simply put 2 stocks were declining to 1 stock gaining. This means only a few stocks were taking the market up on Friday.
4. The large caps have rallied and the next week may see the Nifty not going anywhere but the mid cap stocks rallying from here.
5. The Obama visit may be a trigger for some up moves if we hear some big ticket announcements.
6. The Greece elections are on Sunday and our markets are closed on Monday. Let us see how this impacts markets on Tuesday.
My experience is that any fall is short lived if it is based on global factors and it can be a buying opportunity.
7. All corrections since the rally from 5118 in August 2013 have been 500-600 points. I do feel 1 correction is due of about 1000 points.The only question is when.
The Budget session is on the Feb 28th. I expect further direction to the markets after the budget.
Now is a good time as any to book profits and lock in those profits in other asset classes like Gold or Fixed Deposits.
1. The FIIs have been heavy buyers and have bought stocks worth 7000 crores in the last 6 trading sessions. This is reflected in the large caps going up.
2. If we extrapolate the previous up move from 7723 to 8627, we get a target of 8965 or 9523. we will reach there but after corrections.
3. In spite of the market going up on Friday, the Advance Decline ratio was negative. Simply put 2 stocks were declining to 1 stock gaining. This means only a few stocks were taking the market up on Friday.
4. The large caps have rallied and the next week may see the Nifty not going anywhere but the mid cap stocks rallying from here.
5. The Obama visit may be a trigger for some up moves if we hear some big ticket announcements.
6. The Greece elections are on Sunday and our markets are closed on Monday. Let us see how this impacts markets on Tuesday.
My experience is that any fall is short lived if it is based on global factors and it can be a buying opportunity.
7. All corrections since the rally from 5118 in August 2013 have been 500-600 points. I do feel 1 correction is due of about 1000 points.The only question is when.
The Budget session is on the Feb 28th. I expect further direction to the markets after the budget.
Now is a good time as any to book profits and lock in those profits in other asset classes like Gold or Fixed Deposits.
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