ASI movement to 6400 points, can not be ruled out

As mentioned earlier this week will be short due the New Year Holidays. The momentum in the Market is better even then. Therefore the sentiments are friendlier with the bulls than the bears. 6248 points was the lowest the index came down to, after it got ripped off during the trauma started from the 4th of January 2016.

We have now passed it and heading towards 6300. The next barrier seems like the area at the end of 2015, which is around 6400 region. We can't see any obstacles till then. The major reasons that brought the market down were the inconsistent policy statements, some that came from the budget, then the Rupee devaluation, thereafter the interest rates adjustments, also the proposed Capital Gains Tax, also the battered Global Financial Markets, then the re - rating of the Emerging Markets, leading the foreigners to exit. As long as the Tax adjustments are not in existence legally, the Companies would have done their normal business and show their normal results. Therefore the quarterly results will be interesting to watch.