June expiry is has always been a good opportunity for bear traders. Past History shows that june expiry always remain unlucky for the Indian market.
All sentiments are showing bearish trend in the market. It may be possible that market may touch its previous lows. It is advised for Indian investors not to create any new long position in this expiry.
Factors to Watch in june
Fundamental factors
Negative Factors:
1)GDP growth: India's GDP growth dropped to a 9-year low of 6.5%.which may become big trouble for Indian market.
2)High Inflation: India's Inflation Index is at 7.23% .which is above the comfort level.
3)Dollar Appreciation: 20% increase in dollar against rupee since early 2011.
4)GAAR Effect: Despite the govt assurance on taxation .The share of p-notes in total investment by FII in April was at 7.9% lowest since 2005
Positive Factors
1)RBI Policy:RBI Policy is on 18th June which may bring some relief for Indian market. RBI may take step some steps to control rising Inflation and declining GDP growth.
2)Crude Oil: Oil falls below $100 for the first time since October 2011.
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