Well, Governor Rajan shook up everybody on a somnolent Saturday by stating he will not be in office for a second term. The poster boy whom everyone wanted will not continue and this will have a sentimental effect on the markets.
1. Markets are driven by human sentiments and emotions. I expect a short term reaction from the markets before stabilizing. 1 major event is out of the way and kudos to Mr Rajan were not keeping the issue hanging in fire till September.
2. The next issue is the British referendum on whether to remain in the European Union on the 23rd June. If this happens, then UK may split with Scotland seeking its own independence.
3. If the BREXIT happens, then we may see the 7500-7800 band being tested and which will be a buying opportunity. Even the dip arising from Rajan exit will turn out to be a very good buying opportunity.
4. The FIIs were sellers 3 of the 5 days and their support is needed for the markets to move higher.
5. The Mahanagar Gas IPO is coming next week and it is a very good IPO to subscribe to.
6. Technically, the markets are pausing after a sharp up move and now would be a good time to add stocks.
7. The GST Bill seems to be almost sure to be passed. So, after the BREXIT event we have a potentially positive event lined up.
All in all, every dip which would be presented next week will be a very good buying opportunity.
1. Markets are driven by human sentiments and emotions. I expect a short term reaction from the markets before stabilizing. 1 major event is out of the way and kudos to Mr Rajan were not keeping the issue hanging in fire till September.
2. The next issue is the British referendum on whether to remain in the European Union on the 23rd June. If this happens, then UK may split with Scotland seeking its own independence.
3. If the BREXIT happens, then we may see the 7500-7800 band being tested and which will be a buying opportunity. Even the dip arising from Rajan exit will turn out to be a very good buying opportunity.
4. The FIIs were sellers 3 of the 5 days and their support is needed for the markets to move higher.
5. The Mahanagar Gas IPO is coming next week and it is a very good IPO to subscribe to.
6. Technically, the markets are pausing after a sharp up move and now would be a good time to add stocks.
7. The GST Bill seems to be almost sure to be passed. So, after the BREXIT event we have a potentially positive event lined up.
All in all, every dip which would be presented next week will be a very good buying opportunity.
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