The markets went into a correction mode last week and were helped along the way by a SEBI induced circular which banned 332 companies from trading. While by weekend a handful of these were relaxed the larger picture remains. The correction saw markets lose ground on all the five days of trading last week. The BSESENSEX lost 1,111.82 points or 3.445 to close at 31,213.59 points while NIFTY lost 355.60 points or 3.53% to close at 9,710.80 points. There was correction all across and there were hardly any shares that were left unaffected.
The week saw two listings as well in the form of SIS and Cochin Shipyard. While the first opened well and closed with losses of 7% the second opened a little higher than the issue price and then closed at the upper circuit gaining about 21%.
The week ahead has a trading holiday on Tuesday on account of India’s 71st Independence Day. The markets are likely to show some rebound at initial having lost for five consecutive days but it is unlikely to be significantly more than that. The feeling that every dip was an opportunity to buy would no longer be there and people would turn cautious. The geo-political situation at the current moment is not the ideal situation and there could be some pressure points in the coming future.
In such a scenario it makes sense to remain light footed and use sharp dips and rallies to enter and sell the market. Plenty of opportunities would be there and one needs to be patient.
