The markets reacted from the strong resistance zone and have begun to correct. If the correction persists, it will be a very good buying opportunity. One would now find the mid caps rallying while the large caps will cool off a bit.
1. The FIIs have continued to be buyers for every day of June. DIIs are sellers and the support is there for the markets to avoid a drastic fall.
2. The poor IIP numbers may lead to the minor correction continuing in the early part of the next week.
3. Technically 8114 and then 7950 - 8000 are strong support zones. A cooling off is healthy and required for the markets.
4. The RBI policy as expected was a non event for the markets. Rates were kept unchanged and unless more rate cuts are transmitted to end users, this will continue.
5. The next event coming is the supposed exit of Britain from the EU, Brexit as it is called on the 23rd June. If that happens, the global markets will collapse.
6. Domestically, other than confirmation of the monsoons, there are not many triggers in the immediate future for the markets to react.
7. Technically, the markets have reacted from a resistance zone and are expected to retreat to a support zone before the next leg up.
One will now see action shifting from the front line stocks to the mid caps. The index will take a breather while the cash shares do well. Even for the correction from November 2015 to Feb 2016, the cash shares or the mid caps started correcting only in the month of Jan 2016.
1. The FIIs have continued to be buyers for every day of June. DIIs are sellers and the support is there for the markets to avoid a drastic fall.
2. The poor IIP numbers may lead to the minor correction continuing in the early part of the next week.
3. Technically 8114 and then 7950 - 8000 are strong support zones. A cooling off is healthy and required for the markets.
4. The RBI policy as expected was a non event for the markets. Rates were kept unchanged and unless more rate cuts are transmitted to end users, this will continue.
5. The next event coming is the supposed exit of Britain from the EU, Brexit as it is called on the 23rd June. If that happens, the global markets will collapse.
6. Domestically, other than confirmation of the monsoons, there are not many triggers in the immediate future for the markets to react.
7. Technically, the markets have reacted from a resistance zone and are expected to retreat to a support zone before the next leg up.
One will now see action shifting from the front line stocks to the mid caps. The index will take a breather while the cash shares do well. Even for the correction from November 2015 to Feb 2016, the cash shares or the mid caps started correcting only in the month of Jan 2016.
No comments:
Post a Comment