MARKET REMAINED IN A RANGE BOUND MOVEMENT, A CONSOLIDATION MODE. NIFTY CLOSED AT 5891 & SENSEX AT 19612.
NOW A BILLION DOLLAR QUESTION IS- WHETHER THE MARKET HAVE STARTED CONSOLIDATION OR CORRECTION?
ARGUMENTS IN FAVOR OF THE MARKET MOMENTUM:
1.There is a strong market breadth, which means that the current rally is not a narrow and now it is in consolidation mode after a strong run for past 9-10 trading sessions.
2.FIIs are net buyers and they are consistently buying in cash markets. This shows that the India is getting allocation from foreign funds on the basis of fundamentals and there remains very low risk of bad news.
3.Brokerages have started upgrading the companies, reflects the confidence that in the near term markets will rise, hence the current fall is consolidation, which may not be a deep correction.
ARGUMENTS AGAINST THE MARKET MOMENTUM:
1.Stock Futures have jumped, showing that there is selling in the cash market in Nifty Stocks, which may spoil the party if it continues.Mid-Cap & Small-Cap have started rising,after a very narrow rise in frontlines Large-Cap stocks, this is not a healthy sign for strong move in near term.
2.Large Cap stocks are falling, or they are not advancing, showing that the market(Nifty) has reached the near term top (5900-5950) and there could be a correction trigger, ahead of Q4 results, if the result estimates are not as per the current market prices, justifying them.
3. Fuel Prices may rise as the crude is reaching the 2 years top. This may fuel the cost push inflation, which the markets will price in with sharp correction.
NOW TO GET THE NERVE, ONE SHOULD LOOK-IN FOR 1-2 WEEKS FROM NOW. NIFTY IS NOT EXPECTED TO TAKE A SHARP CORRECTION IN NEAR TERM, BELOW 5600. HENCE THE NEW RANGE REMAINS 5600-6000. BOOK PROFITS IN FRONTLINE AND MID-CAP HOLDING, AROUND 5900-5950, WHICH ARE GIVING PROFIT AND WAIT FOR THE NEXT TRIGGER ESPECIALLY THE Q4 RESULTS.
ANY DIP TO 5800-5750 SHOULD BE USED TO BUY QUALITY STOCKS , BOTH IN FRONTLINE AND MID-CAP SPACE. IF THE FALL CONTINUES BELOW 5750 TO 5700-5650 THEN THE CURRENT PAUSE WILL BE TERMED AS CORRECTION AND SHOULD BE USED TO ENTER THE SELECT LARGE CAPS, LIKE RELIANCE, SBI, ICICI, ONGC, INFOSYS, ETC
WHATEVER THE STOCKS HAVE BEEN MENTIONED IN THE PAST FEW DAYS ARE THE RECOMMENDATION FOR THE REMAINING WEEK. BUY ON FALL AND SELL ON RISE IN THE RECOMMENDED COUNTERS.
Safe Harbor
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
NOW A BILLION DOLLAR QUESTION IS- WHETHER THE MARKET HAVE STARTED CONSOLIDATION OR CORRECTION?
ARGUMENTS IN FAVOR OF THE MARKET MOMENTUM:
1.There is a strong market breadth, which means that the current rally is not a narrow and now it is in consolidation mode after a strong run for past 9-10 trading sessions.
2.FIIs are net buyers and they are consistently buying in cash markets. This shows that the India is getting allocation from foreign funds on the basis of fundamentals and there remains very low risk of bad news.
3.Brokerages have started upgrading the companies, reflects the confidence that in the near term markets will rise, hence the current fall is consolidation, which may not be a deep correction.
ARGUMENTS AGAINST THE MARKET MOMENTUM:
1.Stock Futures have jumped, showing that there is selling in the cash market in Nifty Stocks, which may spoil the party if it continues.Mid-Cap & Small-Cap have started rising,after a very narrow rise in frontlines Large-Cap stocks, this is not a healthy sign for strong move in near term.
2.Large Cap stocks are falling, or they are not advancing, showing that the market(Nifty) has reached the near term top (5900-5950) and there could be a correction trigger, ahead of Q4 results, if the result estimates are not as per the current market prices, justifying them.
3. Fuel Prices may rise as the crude is reaching the 2 years top. This may fuel the cost push inflation, which the markets will price in with sharp correction.
NOW TO GET THE NERVE, ONE SHOULD LOOK-IN FOR 1-2 WEEKS FROM NOW. NIFTY IS NOT EXPECTED TO TAKE A SHARP CORRECTION IN NEAR TERM, BELOW 5600. HENCE THE NEW RANGE REMAINS 5600-6000. BOOK PROFITS IN FRONTLINE AND MID-CAP HOLDING, AROUND 5900-5950, WHICH ARE GIVING PROFIT AND WAIT FOR THE NEXT TRIGGER ESPECIALLY THE Q4 RESULTS.
ANY DIP TO 5800-5750 SHOULD BE USED TO BUY QUALITY STOCKS , BOTH IN FRONTLINE AND MID-CAP SPACE. IF THE FALL CONTINUES BELOW 5750 TO 5700-5650 THEN THE CURRENT PAUSE WILL BE TERMED AS CORRECTION AND SHOULD BE USED TO ENTER THE SELECT LARGE CAPS, LIKE RELIANCE, SBI, ICICI, ONGC, INFOSYS, ETC
WHATEVER THE STOCKS HAVE BEEN MENTIONED IN THE PAST FEW DAYS ARE THE RECOMMENDATION FOR THE REMAINING WEEK. BUY ON FALL AND SELL ON RISE IN THE RECOMMENDED COUNTERS.
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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