Market continues to trade in a very tight range

The markets closed 0.4 pc higher for the week, continuing to grind up. The markets are moving up very slowly led by the front line stocks, Unless there is broader participation, the up move looks a bit difficult to sustain. Let us try and examine the technical and fundamental factors.Technicals:1.We are in leg C upwards which started from 4770. C1 was 4770-5348, C2 was 5348-5032. The picture is very clear up to this point.C3 began at 5032. This up...

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Nifty fails to clear the Resistance Area

The Markets gained another 1 pc to close the week at 5366. The markets have now posted 3 weeks of gains. Let us see what next for the markets.Positives:1. The FIIs have continued to buy in the markets. They have bought on each and every trading day of the month. They have bought about 6500 crores in addition to the 10000 crores of stocks which they have bought in the month of July.2. The Mutual Fund related reforms announced by SEBI, the IPO norms...

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Will a poor Monsoon affect your portfolio?

This year, monsoon rains have been conspicuous by their absence. Whilea few parts of the country have received excess rainfall, that hasbeen the exception than the rule. Drought-like conditions areprevailing in many parts. In other parts, rainfall has been scanty tomediocre.By all accounts, rainfall will be below average this year. What willbe the effect of a poor monsoon on your investment portfolio? In thismonth’s guest post on Subhankar's blog, I look at a few sectors that may getnegatively affected by a poor monsoon and a few that may not do...

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Market tests the Resistances and retreats

The Markets gained around 2 pc overall for the week. They tested the resistances of 5378 and retreated back. These are very key levels for the markets.1. In the last rally in Feb-March, the markets hovered in the rage between 5300-5400 before breaking out. I expect the same to happen this time.2. Looking at the wave counts we are in the C leg of rally from 4532. Just to recap, C1 was 4770 - 5348.C2 was 5348 - 5032C3-1 was 5032 - 5378 = 346 pointsWe should now in C3-2 wave which should test 5246, 5205 or 5164. Only below 5100 would did this entire...

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Markets at critical resistances

The Markets gained over 2.3 % to close at 5215. The markets are now heading into a cluster of resistances which will determine if the up move continues or we are going back into a trading zone. Let us try and examine each of these factors.Technicals:1. The Market is in the Leg C of the corrective up move started at 4532 in Dec'11.C1 was 4770- 5348C2 had 3 legs A, B and CA was 5348 - 5169B was 5169 - 5257C was 5257 - 5032C3 commenced from 5032 and we are near the end of the wave C3 -1.This is one wave count.Another could be C2 - A 5348 - 5032, B...

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