Sunday, July 26, 2015

Lower Crude Prices a positive trigger

The markets were down 1 pc for the week. All the commodity prices took a big beating and that is a big positive for the Indian economy. Let us see the factors for the coming week.

1. The fall in metal and crude prices augers well for the Indian economy. The massive infrastructure spend lined up will get done at much lower rates.

2. The FII s have started buying and started buying big time. This bodes well for the markets.

3. The monsoons have picked up again and with almost half the monsoons gone by, the deficit is only 5 pc. For the met forecast of a deficit of 12 pc to come true, the next half of the monsoons should be almost 20 pc below normal which is very rare.

4. Reliance came up with very good set of numbers which should help the markets move higher.

5. The Parliament logjam continues and this is bad news for the markets. This is the only negative trigger for the markets currently,

6. The expiry is on Thursday and markets can be volatile till then.

7. The correction can take us to 8300-8400 levels which would be a good buying opportunity.

8. The PFC FPO opens tomorrow and which is a good buying opportunity as a discount of 5 % is being offered to retail investors.

All in all the markets seem to be in a good shape and the correction which started in March and lasted amost 5 months seems to be coming to an end.


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