Buoyed by positive global cues, better than expected Q2 results from RIL and sustained buying from FIIs, markets notched up gains for fourth consecutive week to close at two month high during the week ended. The Sensex and the Nifty closed 256 points and 57 points higher at 27,471 and 8,295 respectively. It is important to observe that the Sensex and the Nifty have gained 1,670 points and 427 points during the last four weeks. Good market breadth reflects sustained buying in the midcap and smallcap from retail investors.
Market men are becoming apprehensive over Bihar election outcome. Cauton is the watchword. Apart from Q2 results of important companies like Axis Bank, ICICI Bank and others, US FOMC meet on October 28, F&O settlement, India Fiscal deficit numbers on October 30 and Europe unemployment rate on October 30 will impact markets in the coming week.
With growing expectations that the US Fed will not hike rates till next spring and stimulus packages from ECB and China providing the necessary steroid for the markets, global markets are celebrating Oktoberfest. Near term direction of markets will be determined by Q2 earnings, FII investment trends, movement of rupee against the dollar and oil prices.
For the week ahead, chartists predict trading range of 26,900-27,850 for the Sensex and 8,170-8,425 for the Nifty. Immediate supports for the indices are at 27,250 and 27,000 and 8,250 and 8,090.
