Sunday, April 19, 2015

Markets trapped in a range

The markets had a down week in the truncated week to again close at the lows of the week. The corporate results have started trickling in and they are pretty lukewarm to say the least.

1. RIL beat expectations and had their all time high record profits. The Retail arm posted profit for the full year. The real story in RIL woud be over the next 5 years when they de merge the Retail and Telecom business again as they had done in 2005.

2. TCS gave a big bonus to its staff on the 10th year anniversary of its listing. Ths also points out to increased attrition being faced by TCS and its move to retain staff.

3. The markets are trapped in a range between 8300-8800. Till the range is broken decisively we will not see moves either to 7800 or to new highs are 9300-9400.

4. The VRL IPO was oversubscribed and it is going to be a lottery for Retail investors those who get allotment.

5. The future move of the market will be guided by the Results season.

6. Probable path for the Nifty could be 1 more up move from here to about 8800-8900 before a dip to 8000 or a straight dip from here.

7. In the last couple of days, the FIIs have begun selling.

The bottomline is clear. The next 18 months at least are very bullish for the markets. It is a buy on dips market.

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