The markets dipped 0.3 pc for the 4 trading sessions last week but that is only half the story. There was a spike up to new all time highs and the Coal India FPO also was completed.
1. The Coal India FPO was a big relief to the Government as they will mop up close to 22400 crores. The healthy demand especially about 1 billion dollars worth of applications from the FIIs is encouraging.
2. The market has basically run out of triggers now. The Delhi election results on the 10th of Feb ad the Union Budget on the 28th of Feb are the 2 key triggers in the very short term and the medium term.
3. The next upward targets for the market are at 9200 and 9500. Key support lies at previous top of 8627.
4. The RBI policy meeting on Tuesday could influence the markets. I do not expect any immediate rate cuts in the offing.
5. Further divestment by the Government in ONGC and NHPC are expected to suck the liquidity out of the markets and I expect a rage bound market in February 2015. The broader range could be 8500-9100.
6. The month of Jan saw a gain of 6.4 pc. Whenever there has been a substantial gain in the moth of Jan, Feb has been negative or marginally positive. Looking to a 2-3 pc upside from here gives us 9072 as an upward target at the max.
Now is a time to clean up the portfolio get rid of weaker stocks which have run up and accumulate stronger stocks on dips.
1. The Coal India FPO was a big relief to the Government as they will mop up close to 22400 crores. The healthy demand especially about 1 billion dollars worth of applications from the FIIs is encouraging.
2. The market has basically run out of triggers now. The Delhi election results on the 10th of Feb ad the Union Budget on the 28th of Feb are the 2 key triggers in the very short term and the medium term.
3. The next upward targets for the market are at 9200 and 9500. Key support lies at previous top of 8627.
4. The RBI policy meeting on Tuesday could influence the markets. I do not expect any immediate rate cuts in the offing.
5. Further divestment by the Government in ONGC and NHPC are expected to suck the liquidity out of the markets and I expect a rage bound market in February 2015. The broader range could be 8500-9100.
6. The month of Jan saw a gain of 6.4 pc. Whenever there has been a substantial gain in the moth of Jan, Feb has been negative or marginally positive. Looking to a 2-3 pc upside from here gives us 9072 as an upward target at the max.
Now is a time to clean up the portfolio get rid of weaker stocks which have run up and accumulate stronger stocks on dips.
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