ASI

DTF
Another red session for the ASI, closing down 0.06% at 194,370.2 points, with WTD performance now at -0.32%. While some are quick to label this a bear market, that conclusion is premature. What we are witnessing is an overdue and healthy correction following the recent ATH of 197,327.6 points.
Technically, market structure remains intact. The broader uptrend has not been broken. I anticipate a pullback toward the 189,160.6 – 190,700.8 demand zone on the daily timeframe, where bulls are likely to defend aggressively. A breakdown below that region could bring 180,000 points into focus, although that scenario currently appears less probable.
It’s important to remember that corrections are a normal part of any sustained uptrend. They reset momentum, improve valuations, and create stronger entry opportunities.
What could drive the next move?
-Release of audited FY results and Q1 2026 earnings. Strong, sustainable earnings and dividend declarations could catalyze a rally toward the 210,000 points region.
-The May 2026 MPC meeting and upcoming inflation data will be key macro drivers. The last rate cut triggered market weakness, so policy direction will be closely watched.
Positioning Strategy
-Remain patient and avoid emotional decisions.
-Accumulate fundamentally strong blue-chip stocks at attractive levels.
-Look for oversold names with solid earnings quality and supportive volume.
-Prioritize companies with strong corporate governance and sustainable cash flows.
In summary, the market is not in a bear phase; it is undergoing a normal correction within a broader bullish structure. Discipline and selective positioning remain essential.
#NFA