Lull before the storm

With the absence of any major triggers, the front line indices are range bound where as the mid caps are racing ahead. This inertia may last for 1 week more as a lot of triggers are ready to move the markets ahead.

1. The Parliament will be in session from July 18th and it looks like the GST bill may pass through the Rajya Sabha. If that happens expect 8800-9119 on the indices.

2. The monsoons are normal so far and in a couple of weeks, there will be confirmation of normal rains and 1 more positive for the markets.

3. The FIIs continue to buy and that is a great support for the markets.

4. Every dip becomes a buy now and the markets may test 8000-8100 area once before the next up move.

5. The earning season is about to begin and typically such months are range bound for the markets.
 The GST bill will come up towards the end of July after the customary shadow boxing amongst the various parties.

6. Technically, the market looks set for new highs after some consolidation.

7. IPOs are hitting the markets and that is a sign of bull markets.

All the negatives seem to have been taken care of and the markets should make new highs before Diwali unless some unforeseen event happens.