Correction about to end

The first 2 weeks of April have been listless and dull. Exactly how the results months play out flat and in a range. Despite the correction, there are many stocks hitting new 52 week highs. Let us see what next for the markets.

1. The pace of correction is gentle at best and that implies it is just a correction then anything more. 9119 the previous high will become a strong support for the markets.

2. The previous fall was from 9218 to 9019 approx 200 points. If we look at equality current fall should end at 9072 max.

3. Geo political tensions have increased in Syria and with North Korea but no one seems to be interested in aggravating tensions. Apart from token attacks, the things seem to quieten down without too many fireworks taking place.

4. International markets also are flat and listless.

5. I expect 1 last up move before a decent correction. The market is looking sluggish but one last up move, a burst of glory can be expected. 

6. Now, and in this up move is the time to book profits.

7. Sell in May is the old adage and this time it may prove true. Part booking of profits and buying the same stocks back at ower levels thereby reducing the cost acquisition is recommended.

Small consolidation before new highs

The markets were propped up this week and let us look at what the new financial year brings to the table. This has been a very good year for the markets.

1. The markets needs to convincingly break 9218 and close above it for 9400-9500 levels. It could happen that we spend  more week consolidating in the 9000-9200 band before breaking out for new all time highs.

2. The Global markets are benign at the moment and no major triggers are expected at the moment.

3. Domestically the new triggers wll be the earnings season which will kick off in middle of April. The next 2 weeks the markets have no major trigger and one can expect side ways movement.

4 The gap needs to be filled up. If it does not get filled up now it may never get filled up. Rember the 2009 election gap at 3700-3900.

5. The movement is very stock specific and it is time to add good stocks which will give solid returns over the next 18 months.

The Bear phase is behind us now and now is the time to buy all dips. With good stocks one will definitely make loads of money.

The IPOs are also coming in the markets and one could play the lottery by applying for 1 lot in the name of everyone in the family. A cool 3-4 K can be made minimum from each allotment that one gets.

In a nutshell, very unlikely that the markets will correct much below 8950.