Unnerved by the uncertainty in markets, absence of any positive triggers, concerns over stability in Europe and continued stalemate in parliament; markets closed on a weak note during the week ended. Benchmark indices, the Sensex and the Nifty closed lower at 26231 and 8087.
In one of the longest unbroken selling streaks, FIIs have pulled out Rs 18,800 crore ($2.8 billion). Stalemate in parliament over demonetisation issue has raised concerns over implementation of GST as per schedule.
Rate cut by RBI in policy meet on December 7 has been discounted by the markets say observers. It is important to see the fine print of commentary and RBI take on impact of demonetisation and capital outflows.
US fed meet on December 13 may witness the rise of interest rates. Eurozones’s third largest economy Italy is voting on a referendum of reforms which may decide the course of Eurozone.
OPEC breathed new life into crude this week by shocking skeptical Wall Street with an agreement. In near term markets will continue to witness heightened volatility triggered by events and data.
Extra caution is warranted say old timers. For the week ahead, chartists predict trading range of 25500-27000 and 7850-8325 for the benchmark indices.
Support for the indices evident at 25900 & 25600 and 7975 & 7875. The financial markets are becoming more and more volatile.