Currently, the markets are ruled by fear, trepidation and nervousness
Nervousness and fear over the impact of Chinese slowdown on global economy and sharp selling from FIIs triggered the steepest weekly loss for benchmark indices in about four years during the week ended.
Nervousness and fear over the impact of Chinese slowdown on global economy and sharp selling from FIIs triggered the steepest weekly loss for benchmark indices in about four years during the week ended.
Extending their losing streak for fourth consecutive week the benchmark indices the Sensex and the Nifty closed the week 1,190 points (4.5 per cent) and 347 points (4.3 per cent) lower at 25,201 and 7,655, respectively to hit 13-month low.
Currently, the markets are ruled by fear, trepidation and nervousness. Positive news like exempting FIIs from MAT and buoyancy in tax collections have been ignored by the markets. RBI is expected to issue guidelines for banks to calculate base rate by marginal cost of funding.
Reports of the government preparing for a two-day session of Parliament in September to pass the Goods and Services Tax Bill ahead of the Bihar elections are doing rounds. China’s economy is losing momentum, which has triggered a slowdown in several countries. Global markets have been extremely volatile in August; with stock markets in several countries falling into bear market territory.
Near term direction of markets will depend on IIP data, rupee movement, investment trends of FIIs and global cues. Nest big triggers for the markets are US Fed Reserve meet (September 16-17) and RBI Policy Review (September 29) in the next few weeks.
For the week ahead, chartists predict a trading range of 24,650 and 26,000 for the Sensex and 7,500 and 7,875 for the Nifty. Immediate supports for the indices are at 25,000 and 24,650 and 7,600 and 7,500. When opinions in the market are too unanimous — Beware!
( Source : deccan chronicle )
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