Sunday, October 2, 2016

Buying Opportunity is here

Markets corrected last week finally. The technicals were indicating a correction.  The event in the form of surgical strikes arrived.

1. The lower levels mentioned have arrived and we bounced from 8558, we could bounce to 8750 before ending the correction at 8450.

2. The crisis seems to have blown over and the markets gave a good dip in the last 2 days.

3. The RBI policy on 4th October will be keenly watched, I expect at max a 25 basis point cut. Before the end of this year one can expect a 50 basis points cut.

4. Globally, OPEC has agreed to cut oil supplies, which if it happens can lead to a short spike in oil prices.

5. IF we look at this up move,
Wave 1 was 6825 to 7992 approx 1167 points
 Wave  2 was 7992 to 7715 approx 277 points
 Wave 3 was 7715 to 8970 approx 1255 points
 Wave 4 8970 to 8558 approx 412 points and on going

I expect the correction to end around 8450 and then final burst to 9500 to 10500.
It is a buy on dips market.

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