Enthused by buying from FIIs, positive global cues, sops from Central government for digital payments and waning impact of demonetisation; shrugging away RBI policy meet disappointment markets closed on a optimistic note during the week ended.
Benchmark indices, the Sensex and the Nifty closed higher at 26747 and 8262. It is interesting to observe that FIIs turned buyers after one of the longest selling streaks of 17 days.
Rate cut disappointment by RBI has been discounted by the markets on expectations of better accommodative stance say observers. RBI take on impact of demonetisation and inflation clearly suggest some uncertainty in near term.
Continued stalemate in the Parliament has raised fears of delay in passage of key legislative issues.
US Fed meet on December 13 & 14 may see rise of interest rates by 50 basis points. After witnessing a topsy-turvy ride in the one month after demonetisation, the markets are back to one month high and above the 200-DMA.
Near term direction of markets will be dictated by global cues, developments in parliament and macro economic data.
For the week ahead, chartists predict trading range of 26250-27500 and 8050-8500 for the benchmark indices. Support for the indices evident at 26500 & 26200 and 8175 & 8075. Predicting the short term direction of the market is futile.
