The markets tanked about 1.3 pc. After 5 weeks of solid up move, this correction was much needed and healthy. Let us try ad see the road ahead for the markets.1. The up move which started from 5477 can extend to 6350, 6500 or 7000. The first leg got over at 6229 and this is the correction to the move from 5477 to 6229. The markets can halt at 5942, 5853 or 5765. Only below 5627, the rally has ended.2. The prices of crude oil have stabilized at lower levels and gold imports are also slowing down. This will help the economy and the current account...
Saturday, 25 May 2013
Saturday, 18 May 2013
The markets gained another 1.3 pc to touch 6200. There are several reasons why the markets can touch the previous highs and exceed them. Let us try and explore the probabilities.1. The FIIs are continuously in the buy mode. The liquidity is propelling the markets higher. The DII selling is easily getting absorbed. 2. The Parliament is having its recess and will open only in the Monsoon session in the last week of July. This will ensure that there are no political storms to spook the markets.3. The Monsoons are said to be on track.Looking at historical...
Thursday, 16 May 2013
The next general elections for Lok Sabha seats are less than a year away. Political parties have already started pre-election activities like choosing likely candidates for the PM’s post and discussing possible alternative alignments for government formation.The period prior to a general election is usually one of uncertainty for investors. Uncertainty leads to selling, or at best, staying on the sidelines – neither being particularly conducive for a bull phase. In this month’s guest post for Subhankar, I had presented a different viewpointContinue...
Sunday, 12 May 2013
Sunday, 5 May 2013
For the month of April, the range arrived statistically was 5500-5900. We ended up doing 5477-5962 with a close at 5930. Now let us look at the month of May. There is one disturbing fact for May.1. The low of the May month is always much below the close of April moth. The close for April was 5930 and a close of 6 pc below that leads us to a figure of close to 5600.2. Overall, May month on an average leads to a flat close.There are swings of at least...
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