Sunday, May 22, 2016

Flat Markets so far in this Financial Year

I just happened to look at the market movement post 31st March and we are at the same level since then. Almost 2 months have gone by and no movement. This means a range breakout or breakdown is coming soon.

1. On March 31st 2016, the markets closed at 7738 and yesterday they closed at 7749. The high and low in this period is 7516 and 7992, a range of 476 points. So if the markets break 7992, then they may head to 8468 and if they break 7516, target is 7040. In the month of June I am sure we will come very close to either of these 2 levels.

2. The FIIs continued their selling and now are net sellers for the month of May. If this trend continues, then the markets will see further downsides.

3. Mahindra Financial is coming out with a NCD offering and coupon rate of 9 pc for 10 years seems very attractive to me. You can get 9 pc locked in for the next 10 years. This current low interest rate regime will continue for at least 2 years more.

4. The Election results were more or less on expected lines and hence the markets sort of ignored them What I have noticed is post results, invariably the markets trend to drift irrespective of the results.

5. The market behavior over the last few days has been indicating some form of correction. There are no new immediate triggers present.

It is time to keep fresh cash ready. AT every dip, one can start accumulating. The time to buy will be soon upon us.

1 comment:

  1. It's true!Learning how to manage and grow your money is the only way for getting rich.

    regards,

    market neutral

    ReplyDelete