Enthused by positive global cues, buy back announcements, M&A activity and breakout in RIL stock price; markets recorded fifth straight weekly gains during the week ended.
Benchmark indices, the Sensex and the Nifty soared to close 424 points and 118 points higher at 28,893 and 8,940 respectively.
It is pertinent to observe that markets have logged 7% gains in last five consecutive weeks. Punters expect the momentum to continue till results of assembly elections come out on March 11.
Consolidation in telecom and banking space, revival in economy after the impact of demonetisation and strong inflows to domestic funds may help the market surpass its earlier record high.
Near term direction of the markets will be dictated by the announcement of macro economic data like GDP data and inflation numbers, results of assembly elections, trends in global markets, the movement of rupee against the dollar and crude oil price movement.
Sharp rise in inflows to domestic funds is a big positive and will act as cushion in the event of sell off by foreign funds.
On the commodity front, increasing crude prices and US-led inflation fears may trigger fresh rally in gold. Expect US markets to move big time next week after the Trump speech on Tuesday.
For the week ahead, chartists predict trading range of 28,400-29,350 and 8,800-9,075 for the benchmark indices. Support for the indices evident at 28,575 & 28,300 and 8,860 & 8,800.
