The markets closed August at about 11680 which is a new
closing high for the Nifty. August was very bullish series for the markets.
1. With this, technically, the corrective A-B-C from 11172 can
be discarded with a down C leg pending. It means that the markets should
continue up between 11700-12000 and then correct.
2. This corrective when it occurs will be a deeper correction.
The markets over the last few years have always given a 15-20 pc correction and
a buying opportunity.
3.The correction when it occurs can be from 6926—11750 odd
levels . This will give good entry levels for stocks.
4.Fundamentally, rupee is hitting all time lows and domestic
fuel prices are at all time highs.
The elections in MP, Chhattisgarh, Rajasthan would be held
in November and in the run up to elections markets are always very nervous.
5.The uncertainty or rather the perceived uncertainty till May
2019 means no breakaway rally from here. Between last month and now, things
have deteriorated rather than improved.
6.I am booking profits and taking out money. The last few
rupees let someone else take the profits, I would wait to buy on dips.
Markets always give opportunities to buy and current levels,
the risk reward profile is not matching.
The markets can remain higher for some more time but they
will have to correct before rallying up.
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