China, Japan to guide global markets

Perked up by assurances of FM on reform agenda and stable global cues, markets notched up decent gains during the week ended. Despite a “wash out” of the parliament session wherein no progress was seen on GST Bill and Bankruptcy Bill, markets are hoping for key reforms towards “ease of doing business” ahead of the budget.

The Sensex and the Nifty moved up by 320 points and 99 points to close at 25,839 and 7,861. It is pertinent to observe that smallcap and midcap stocks are witnessing heightened activity and were seen outperforming frontline stocks. Analysts expect 2016 to be the year of smallcaps and midcaps.

However, investors should be cognizant of the fact that this segment is also a landmine of shady promoters. Remember that good stocks always come back and unknown stocks may disappear.

For the coming week, keep track of Chinese PMI data and Japanese IIP on global front, sales numbers of automobiles and dispatch data of cement companies on domestic front. Near term trend of markets will be determined by the global price trends of crude oil and the rupee movement against dollar.

For the week ahead, chartists predict a trading range of 25,350-26,300 and 7,715-8,025 for the indices. Immediate supports for the indices are at 25,500-25,300 and 7,770-7,710. As the year comes to an end, don’t look back at yesterday’s disappointment. Genuine success co-mes only to those inve-stors who are ready for it. Wishing all readers a great, prosperous, blissful, healthy, delightful, energetic and extremely happy new year 2016.