markettrend766
06-10-2008, 07:01 AM
Swinging to the tunes of global cues, markets ended with big losses during the week ended. The Sensex fell 576 points to end at 12,526 and the Nifty lost 167 points to close at 3,818.
Sharp losses were seen in the CNX Midcap and the BSE Smallcap indices reflecting uncertainty. With US financial crises on the centrestage, investors have ignored positives like increase in FDI flows, approval of the Indo-US nuclear deal, fall in crude oil prices and inflation and expectations of good kharif crop.
Analysts feel that impact of the US recession on eme-rging markets cannot be ruled out easily. Even a developed country like Japan has reported a trade deficit for the first time in 26 years due to a fall in exports to the US. Despite the passage of $700 billion financial market rescue plan, the US markets ended in red reflecting that ‘threat’ has not abated.
Buying has completely dried up and fresh triggers are needed to infuse life into the markets. Barring unexpected negative surprises in Q2 results, season markets are likely to remain range bound for more time than expected with downward bias.
Avoid short term and do shopping for good stocks with a long term perspective. Key events to watch in the week ahead are Sebi meeting and RBI policy moves.
Trading range for the indices in week ahead is likely to be 11,670-13,200 and 3,540-4,060. Supports for the indices stand at 12,150 and 11,880 and 3,720 and 3,640. Initiate fresh positions if indices trade steadily above 13,000 (BSE) and 4,000 levels (NSE).
Sharp losses were seen in the CNX Midcap and the BSE Smallcap indices reflecting uncertainty. With US financial crises on the centrestage, investors have ignored positives like increase in FDI flows, approval of the Indo-US nuclear deal, fall in crude oil prices and inflation and expectations of good kharif crop.
Analysts feel that impact of the US recession on eme-rging markets cannot be ruled out easily. Even a developed country like Japan has reported a trade deficit for the first time in 26 years due to a fall in exports to the US. Despite the passage of $700 billion financial market rescue plan, the US markets ended in red reflecting that ‘threat’ has not abated.
Buying has completely dried up and fresh triggers are needed to infuse life into the markets. Barring unexpected negative surprises in Q2 results, season markets are likely to remain range bound for more time than expected with downward bias.
Avoid short term and do shopping for good stocks with a long term perspective. Key events to watch in the week ahead are Sebi meeting and RBI policy moves.
Trading range for the indices in week ahead is likely to be 11,670-13,200 and 3,540-4,060. Supports for the indices stand at 12,150 and 11,880 and 3,720 and 3,640. Initiate fresh positions if indices trade steadily above 13,000 (BSE) and 4,000 levels (NSE).