Sunday, March 29, 2015

Time to Buy

The markets continued with their correction and further fell another 2.7 pc this week. The next week is a truncated week for the markets and now the markets have begun to present a good long term buying opportunity for investors.

1. The year end considerations are almost at an end. The next week has the markets open only for the first 3 days. It is a good time to start buying good quality stocks.

2. The markets fell on Yemen air strikes and oil prices going up. I have noticed whenver markets fall on Global worries, they tend to bounce back equally fast.

3. Even though, the markets have corrected about 9.32 pc from the top, many blue chips have corrected about 15-20 pc from the top. In a long term bull markets such drop represent good buying opportunities.

4. 8110-8170 are strong support regions and we are not too far away from that. It is a risk of 150-200 points further downside. the 200 day moving averages reside there and I have seen many times markets bounce from there.

5. The FIIs have continued to buy and that is one key reason to continue buying in this market.

6. Parliament has gone in for a recess and the first set of corporate results will trickle in only by 10-12 April.

There are no immediate triggers for the markets to go anywhere. The truncated week may lead to further correction, but then that is a very good buying opportunity. In bull markets whenever markets correct 10-15 pc it always give a good buying opportunity.

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