Markets were in consolidation mode during the week ended absorbing the bouts of profit booking after the passage of GST Bill in the Rajya Sabha and enthused by the stimulus packages of BOE and Japanese government.
The Sensex and the Nifty closed marginally higher by 27 points and 45 points at 28,078 and 8,683 respectively. Enthused by positive global cues and passage of GST Bill, foreign investors have pumped Rs 2,300 crore in the last few sessions.
RBI is likely to hold key rates in the upcoming monetary policy on August 9.
Analysts expect RBI to maintain status quo on interest rates this time, citing various factors su-ch as monsoon progress, inflation, oil prices.
Ignoring the prospects of an interest rate hike by the Federal Reserve in September, lingering concerns over impact of Brexit and slowing growth in China; US investors are reacting appropriately to the sustained economic stability. Solid US Jobs data has propelled US indices S&P and Nasdaq to new highs.
For the week ahead, chartists predict trading range of 27,600-28,750 and 8,500-8,865 for the indices. Key supports for the indices are at 27,800 and 27,550 and 8,575 and 8,500. With suspense over passage of the GST Bill over, RBI policy meeting, macroeconomic data, progress of monsoon rains, first quarter corporate results and sentiments in global markets will dictate the market trend in the near term.
