The week ahead: tread carefully.by J Victor on April 21st, 2014
The sensex and the nifty closed at 22,629 and 6,779 during the week ended on last Thursday. (Friday was a holiday for stock markets on account of Good Friday.). The first event today will be the market’s reaction to RIL’s results announces on last Friday. RILs results failed to beat market expectations. On the economic front, we see only discouraging indications as the March WPI and CPI rose and the IIP data showed a fall. A better monsoon forecast may pep up the sentiments.
Going ahead, this week is a holiday shortened week as the stock markets will be closed on Tuesday for general elections in Mumbai. Although the ongoing rally is based on the hope that NDA will come into power, the quarterly results from heavyweights like HDFC bank, ICICI bank, Axis bank and Maruthi will decide the basic trend for the week. The market has been favoring corporates with better results and at the same time it’s severely beating down the stocks that have failed to meet expectations. This week also has derivative contracts expiry.
Expect the markets to trade in a range of 22,350-23,000 for the sensex and 6,670-6,900 for the nifty with positive bias. The stock markets may crack the ceiling as the poll results day come closer. We feel that its better book profits and remain on sidelines since most of the stocks are trading in the overbought zone.
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