This week the NSE-ASI breached 22,000 for the first time since January 14, 2010 (20 months ago). The next resistance point is 21,000 (which was last breached on January 5, 2010). Both occurred within 9 days of each other with the market scaling 25,000 3 months later.
It will be interesting if recent history repeats itself. While we seek evidence of a stronger reversal it is important to focus on the benefits of the markets move to lower lows.
The dividend yield as calculated by BSL has climbed above 8% and appears to be heading towards the yield on the 10 year bond which is making a reluctant drift downwards. The meeting point of these two indicators may signal the fundamental "bottom" in this market rather than the more psychological one.
The NSE-ASI closed at 21,976.87 -3.29% (-0.23% in the previous week). Volume for the week was a cumulative 1.712 billion shares (1.76 billion shares in the previous week).
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