Despite the disappointment of status quo decision on rate cut by RBI, the markets edged further during the week ended as it consolidated on the gains notched in recent weeks along with positive global cues.
Benchmark indices, the Sensex and the Nifty closed marginally higher to close the week at 28334 and 8794 respectively.
BSE Mid cap and Small cap indices continued to outperform frontline indices. It is pertinent to observe that while the frontline indices have gained around 7% in the current year till date, the midcap and smallcap indices have gained over 12%.
On the back of better-than-expected earnings in the face of demonetisation and hopes of a global recovery suggested by US President Donald Trump, the RBI’s surprise decision to not cut rates and the change in its stance to neutral from accommodative failed to dampen the market’s spirits.
Expect sideways movement in the market as investors eagerly wait for the outcome of five state assembly elections. Weak industrial output data may see the markets play out softly during the early part of the coming week.
For the week ahead, chartists predict a trading range of 27750-28850 and 8600-8925 for the benchmark indices. Support for the indices evident at 28000 & 27750 and 8680 & 8590. The market is most dangerous when it looks best; it is most inviting when it looks worst.
