Sunday, May 8, 2016

7900-8000 becomes a firm ceiling for the market

The markets again had a negative week and the markets have not moved much in the past 3 weeks. The triggers for the Market movement are almost done with in the near future. Let us evaluate what can move the markets in the near future.

1. The progress f Monsoons in the first week of June and the UK referendum on whether to stay in the EU in late June are 2 big triggers and which could be positive for the markets.

2. The FIIS have sold nearly 750 crores in the first week of May and an equal quantity has been purchased by the DIIs. There seems to be a overall lack of interest.

3. Globally, there seem to be no major triggers on the anvil.

4. The major corporate results have come and gone. Infy, TCS, HDFC bank surprised on the positive side whereas Axis and ICICI Bank had negative surprises.

5. Technically, the next supports lie around 7450-7500 if the current range were to give way. Resistances remain at 7850, 7950-8000.

6. Sugar sector seems to be in a sweet spot with the production of sugar set to fall. There is no corresponding dip in the consumption.

7. Capital goods is another sector which will do well after years of recession.

There are currently few IPOs there in the market and there can be listing gains on the same. With the new SEBI norms that all Retail Applicants will be treated on par, that is if you apply for 1 lot or 10 ots, you will be allocated only 1 lot, it makes sense to apply for only 1 lot.

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