The week ahead : indices on a corrective phase.by J Victor on May 9th, 2016
The Indian markets ended in red for the second consecutive week due to negative global cues, weak trend in crude oil prices and caution over assemble elections results. Global markets fumbled due to weak Chinese manufacturing data. However, US markets rebounded due to weaker than expected job data which may suppress the Fed to postpone further rate hikes. The domestic indices – Sensex and the Nifty closed at 25,229 and 7,733 down 1.48% each.
Moving ahead, the next set of Q4 earning , macro-economic data and global cues will set the market trend. The IIP data for the month of March and CPI numbers for April are due on Thursday. In this downward trending market, it is better for investors to wait till these numbers are published and then take a decision on whether to pump in money or not. The market trend will also depend on he next set of monsoon predictions. So we believe that there is some more time to wait before you invest more money into this market.
For the week ahead , we expect the markets to trade in a range of 24,600-25,600 for the Sensex and 7,560-7,960 for the nifty with downward bias. It seems like an oversold market and we expect only stock specific moves.
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