Spooked by the possible conflict with Pakistan following attack by Indian Army on terrorists in Pakistan and increased global volatility; markets have corrected sharply during the week ended.
Benchmark indices the Sensex and the Nifty closed sharply lower by 802 points and 221 points at 27866 and 8611. The last week of the block buster quarter ended on a sober note with hope that tensions don’t escalate.
India’s largest-ever spectrum auction kicked off with major telecom operators placing bids worth Rs 53,531 crore across bands, even as the premium 700 Mhz and 900 Mhz frequencies did not find any buyer. Observers expect GOI to reap a good harvest from spectrum auction.
The Income Tax department’s IDS would reportedly make exchequer richer by over Rs 29000 crore. The Monetary Policy Committee, which is scheduled to meet on October 4, is now entrusted with the job of determining the policy rate.
Near term trend will be dictated by the geopolitical developments on border, Q2 earnings season and global cues. For the week ahead, chartists predict trading range of 27400-28500 and 8475-8760 for the benchmark indices. Support for the indices evident at 27600 & 27350 and 8540 & 8475. Use the present correction to buy quality stocks with steady earnings growth trajectory from medium to long term perspective.
