Sunday, March 13, 2016

FII Buying Continues

The FIIs bought for all the trading sessions in March so far and the index sustained its post budget rise. Let us see what can influence the markets going forward.

1. Every correction in the markets has lasted 12-14 months so far. By correction, I mean the time taken to reach a low point from the top. In this case 9119 was the top. In all probability, 6825 might have been the bottom. It is always said that the markets visits a bottom once. In this case, 6869 and 6825 are very close by.

2. The first up move from 6825 has lasted about 800 + points and may be nearing completion. We may have a 300 400 points correction which would be a buying opportunity. The support zones comes to around 7240.

3. The Advance Tax numbers will be out next week and will be a good indicator on how the companies have fared.

4. The next major event in the Markets is the Annual Results but that is still some distance far off in April. The FOMC meet next week could be 1 trigger for the markets.

5. Technically, we are in the Resistance Zone of 7500-7600, break of which can lead us to 7900-8000 region.

6. This could well be the last opportunity to capitalize on the lower stock prices.

7. The expectations of RBI rate cut in the first week of April is what is keeping the markets up.

As of now, it looks like the bottom is made for the time being and every dip is a buying opportunity.

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