After a fantastic four week gains, markets have turned cautious ahead of Bihar election results
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Spooked by renewed fears that the US Fed may hike interest rates from December, weak Q2 numbers, negative global cues and fresh weakness in rupee markets have corrected sharply during the week ended. Benchmark indices — the Sensex and the Nifty — crashed by 814 points and 229 points to close at 26,657 and 8,066 respectively.
After a fantastic four week gains, markets have turned cautious ahead of Bihar election results. Moody’s “political” comment in its report titled India Outlook: Searching for Potential has dampened the sentiment.
IPOs of Indigo and SH Kelkar confirm that despite institutional demand, retail investors are shunning the public offerings. Expect another choppy week on the back of results of companies like Tata Steel, Tata Motors, SBI and others. Near term direction of markets will be dictated by Bihar election outcome, Q2 earnings, movement of rupee against the dollar and global cues.
It is pertinent to observe that October had been the best month in four years for Dow and S&P 500. Risk appetite is increasing; caution should be the watchword warn analysts.
For the week ahead chartists predict trading range of 26,000-27,150 for the Sensex and 7,890-8,200 for Nifty. Immediate supports for indices are at 26,300 and 26,000 and 7,980 and 7,900.
The stock market is sure to be swayed by the month’s most important news: Bihar election results. Reports indicate that NDA may not do well; and markets are factoring the outcome already say observers. Be patient, don’t be rattled by fluctuations which are expected, like rainy days. Waiting for the right opportunity rises the probability of success.
( Source : deccan chronicle )
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