Al though we expected the sensex and the nifty to move up to a maximum of 21,500 and 6,350, the markets cracked all expectations are moved higher to close at a record 21,919.80 and 6,526.60. The primary reason for the rally is the hope that NDA will from the government at centre. What’s to be remembered is that opinion polls keeps giving dramatic results and as the election date draws closer, these opinions are liable to fluctuate wildly.
That’s what common investors have in mind as they kick off this week’s session on Monday morning. Everyone was happy last week as the sensex and the nifty closed 419 and 121 points higher. However this week, there are three concerns that may stop the surge further:
- Disappointing economic growth data for Oct December quarter at 4.7%.
- Weak auto sales numbers for February
- Probable profit booking as the stock markets are almost near the former highs.
The Indian stock market indices closed in green after a late rally on Friday that took the index past the usual moving range of 5900-6150. The 30 stock sensex also surged 334 points and closed at 20,700 giving out positive signals. The same trend may continue on Monday morning and also throughout the week. The derivatives expiry is on this Wednesday as Thursday is a holiday for Indian stock markets on account of Maha shivrathri.
Moving ahead, the critical resistance for sensex and the nifty are at 20,900 and 6,200. If the markets are able to break this target and move forward, we can hope for the sensex to test the 21k mark once again. A strong break above 6,200 is required for nifty to move ahead to the next target of 6,250. However, under the present circumstances, we are of the opinion that the indices will keep moving in the sideways pattern that we witnessed in the last couple of weeks.
The benchmark sensex and the nifty closed at 20,367 and 6,048 last week. With the Indian politicians ‘spicing up’ the parliament with pepper sprays, It was mostly sideways movement denoting that Indian stock market sentiments turned sluggish. Even positive news like inflation falling to 8 month low did not make an impact in market movement.
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