The benchmark indices – The Sensex and the Nifty – were on a bearish note last week. Weak macro-economic data, crude oil and gold prices and weak global markets contributed more pressure to stock prices, which was already getting a feeling of over valuations. To a certain extent, it was the stock of PSU banks, financial services companies and short covering that helped the markets with some neat resistance. The indices closed the week at 29461 and 9151 respectively declining 245 and 47 points.
With the nifty touching all time high last week, profit booking was seen in almost all the counters. As the trading progressed, the benchmark indices – the Sensex and the Nifty – witnessed more selling pressure and ended the week in red by dropping 228 and 52 points respectively at 29421 and 9106 . This week would be crucial to the markets as the march derivative expiry and negative global cues can keep the indices volatile.
Going ahead, the nifty and the Sensex are witnessing a corrective decline and the negative momentum could continue further as the week progresses. However as long as the indices trade above 8500-9000 and 28500- 29000 levels, we can assume that the bullish undercurrent is on. Should the indices fall beyond these levels, it is a cause of worry.
The markets have been on a roll so far with 5th weekly gains consecutively. The benchmark indices The Sensex and the Nifty closed at 28893 and 8,940 respectively and both the indices have moved past the key resistances at 28500 and 8800 respectively.
Going ahead, positive market cues and Buy back announcements have brought in a lot of enthusiasm in the markets. The markets have already logged in 7% gains in the last 5 weeks and this momentum is likely to continue till the assembly election results come out on March 11th. For this week, there are no major triggers awaited. Auto sales numbers for February and GDP data to be published on Tuesday are the major events to be noted.
The near term market direction seems to be positive. A fall in GDP data ( to be announced on Tuesday) and surprise results in assembly results can cause the markets to retreat a bit.
From the start of this calendar year, the benchmarks Sensex and the Nifty has been on a roll registering almost 10% growth. This has taken the indices close to the 2016 highs and now, the discussion that’s doing rounds is all about the bullish targets possible from hereon. The RBI stance on interest rates was surprisingly ignored by the markets and the corporate earnings so far showed less impact on account of demonetization. The front line stocks have recorded a growth of approximately 7% and the mid cap and small cap sections have clocked a growth of more than 12% in the current year till date. Given the scenario, it only natural that the bullish sentiments are back.
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