Spooked by weak results from IT biggies, negative global cues and uncertainty over near term trend, markets closed with sharp losses during the week ended. Benchmark indices, the Sensex and the Nifty ended 387 points and 115 points lower at 27674 and 8583. The BSE Sensex has completed 30 years of existence. Out of the original 30 companies, only six are in the index now.
Fall in inflation both consumer and wholesale raised hopes of further rate cut from RBI in its next meeting. However, weekend raise in fuel prices and strong price trends in some commodities may ignite inflation again say observers. The winter session of Parliament is set to begin from November 16 and end on December 16. Passage of important bills related to GST and political developments ahead of announcement of assembly elections in UP and Punjab will hold sway over the markets.
Near term trend will be dictated by Q2 results, global cues, investment pattern of FIIs, movement of rupee against dollar and geopolitical developments. For the week ahead, chartists predict trading range of 27000-28250 and 8375-8800 for the benchmark indices.
Support for the indices evident at 27350 & 27050 and 8485 & 8380. It is pertinent to observe that while the Sensex and the Nifty for YTD have appreciated 6 per cent and 8 per cent; the BSE Midcap and the Smallcap indices have gone up by 20.4 per cent and 11.3 per cent.
