|Week||Market View: 23-27 Jun 2014|
|Market This Week||Last week the NIFTY was volatile with a negative bias. It was mainly due to global cues like the situation in Ukraine and Iraq where oil has already crossed $115/barrel. These issues in the short term could affect the market and the NIFTY could correct a bit more from here. However, not more than 5% downside is expected from the current levels. Note that the little selling that has been coming in is with low volumes and so we should not worry as the bulls are still well in control. Also, the FII’s have a long term view of India and their inflows will continue to happen as India is their best bet among other emerging markets. The recently announced railway fare hike will be taken positively by the markets as it is a step to pump the economy further. So, If global cues shape up well and policies, taxes and subsidy issues are addressed well by the government in the coming budget, we will see another one way rally where the NIFTY could hit 7900-8000. Will have to wait and watch till then to see how things shape up.
It was good that we stayed away from the markets the last week. Volatile markets are not suitable for taking positions as there is always a risk of stop losses getting triggered. This week too, the markets will remain volatile. The week also marks the end of June derivative expiry. We have made some good money till now and so let’s try and be on the sidelines during this phase. One must make hay while the sun is shining. The NIFTY is likely to take support at 7450 levels. Expect few or no recommendations for this week as well. Remember, that protecting our money in the stock markets is as important as making money in them. So be patient. Do not get desperate if recommendations are not being sent. Follow exit strategy strictly to exit your positions. All the best!