Sunday, April 12, 2015

Mid caps start outperforming

The markets have gone up another 2.3 pc and we are at a critical juncture now. Let us see if fresh highs are in the vicinity or 1 more correction is due.

1. The week had postive overtones for the Government with the overwhelming success of the REC OFS. The only grouse I have with this methodology is that they complicate it so much that it is beyond the reach of most Retail investors.

2. The bids on NSE and BSE were separate. Usually in an IPO one gets a cumulative bid list on either sites. Second is multiple price methodology adds to the complexity. If one bids too  high, then one gets allotted at a very high price irrespective of what the cut off price. If one bids very low, then the bid has to be tracked the whole day.

3. The mid caps are outperforming, while the index is slowly rising, this is the sign of a good bull market.

4. The signing of Rafale jet deal shows that the Government is intent on some action.

5. The Outlook upgrade by Moody's also helps in improving the investor sentiment.

6. The first set of corporate results will be out next week and they will set the tone for the markets.

7. 8949 is the ceiling for the current up move. If we breach that then we are headed for new highs. 8894 is another critical level to be conquered. 1 may fall from any of these levels to make another bottom between 7900-8200 region.

The strategy remains to buy on dips, good quality stocks.

In response to a reader query, I would not recommend Option Trading as a strategy but one can write higher level call options like 9200 call.


  1. Hi Nishit,

    Could you recommend some classes in Mumbai where they practically teach technical analysis with high success ratio in intra-day, positional or options.

  2. I do not know of any classes. The best way is to download amibroker and learn from the internet, various moving averages, trend lines etc.