The week ahead:Inflation data and global cues to drive the markets..

Good PMI numbers and low expectations of the US Fed rate hike pumped up investor sentiments which resulted in the markets closing at 28,797 (Sensex) and 8,867 (nifty)  points respectively. The indices closed 265 and 57 points higher and renewed buying interest were seen in select mid cap and small cap counters.

Going ahead, the markets will be closed on Tuesday on account of Bakri-id. The near term market movement will be dictated by the IIP and inflation data which are scheduled to be released this week. Now since the markets have reached the highest point in the last 17 months, there is a wave of optimism going on. Profits booking in selected counters are also on cards since the recent surge has given decent returns to short term traders.

For the week ahead, we expect the markets to trade in a range of 28,500-29,500 for the Sensex and 8,750-8,650 for the nifty with positive bias. Note that there has been a selloff in the US markets which if repeated, may affect the Indian markets as well.

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