Range Bound Market Ahead

The markets gained 2.9 pc in the 3 day truncated week. We are in the midst of a corrective bounce up. Let us see what April brings for the markets.

1. The events of March with Advance Tax payments, booking of short term losses are all behind us. The new financial year begins and lets see what can be immediate triggers.

2. The Corporate earnings are still at least 1 week away. They can provide direction to specific stocks.

3. The Parliament session recommences on April 20th and till then I expect the markets to move in a range of 8400-8800.

4. If we take this down move to be corrective in nature, then it should have 3 waves, 2 down and 1 up.

A - 9119 - 8267
B - 8267 - 8592 (already done), 8694 or 8795.
C - from the above top to 8000- 8200 levels.

Much of April should be spent in this journey within the range.

5. The Global markets also have no major triggers to speak of.

For astute traders, they could book profits at 8600-8800 and make fresh re entry at lower levels.

There is a lack of news flow in the coming weeks either to take the markets up or down.