Spooked by reports of prospects of US Fed raising interest rates in its next meeting and uncertainty over moves of other Central Banks and weak macro economic numbers; market snapped its two week successive gains to close with losses during the week ended.
Benchmark indices the Sensex and the Nifty closed lower by 198 points and 87 points at 28599 and 8780. Profit booking was clearly seen for the better part of the week ended.
PM’s assertion that GST will be implemented from 01-04-2017 is big positive.
Rumours of changes in the date for presentation of Budget and possible change in determining the financial year are doing rounds.
Weekend Uri incident in Kashmir has sparked speculation and may cast shadow on markets during the early part of next week. The financial markets are becoming more and more volatile. Extreme levels can signal that market moves are overdone and are due for pause.
Near term trend will be dictated by US Fed meet outcome, Bank of Japan move over stimulus, developments over Uri incident, crude oil price movement, currency changes and trailing move of monsoon.
For the week ahead, chartists predict trading range of 28000-29150 and 8575-8985 for the benchmark indices. Support for the indices evident at 28300 & 28000 and 8675 & 8585. Avoid large positions and take stock specific view advice old timers.
Sniff at inside information; it is usually bunk. The big people don't talk about their operations. Don't buy "cats and dogs" (unseasoned stocks). Buy good standard stocks that have stood the test of time.
