Sunday, September 4, 2016

Heading into a Resistance Zone

The markets finally broke the shackles of the resistance of 8550-8650. The good news is that the congestion zone is broken, the bad news is that the next resistance zone is near by.
1. 11 out of last 14 September s have been kind to the markets, this year could be the same.
2. The breakout is significant as it comes after several weeks of consolidation.
3. Last few weeks midcaps rallied and front line stocks were range bound now it may reverse.
4. One needs to lock in profits and non convertible debentures are safe instruments yielding 9 to 10 pc div yield.
5. Globally, Yellen may raise interest rates.5. In the last rally before peaking out at 9119, 8850 was a significant point and market may get resisted here.
6. Time to stick to quality stocks and avoid the telecom sector.
7. Auto stocks are rallying as the sector is seeing good traction.8. Gold bonds of RBI are 1 good investment option.These are times to be in the markets while at the same time one must lock out profits.












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