Markets to keep a watch on fuel price hike and RBI data
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Markets continued to witness indecisive movements without any clear direction during the week ended.
A weak Q4 GDP numbers, jitters over the developments in 2G scams, slowdown in the auto sales and negative global cues dampened the sentiment. A renewed buying from FIIs, good start for monsoon and lower food inflation numbers were the positives.
On the BSE, the Sensex closed 110 points higher at 18,326 and the Nifty on the NSE ended 41 points up at 5,517. The market breadth and volumes reflect lack of conviction and interest among the market participants. Corruption ‘noise’ level may begin to impact governance say observers. Markets may gyrate to the progress of monsoon and global cues in the near term.
It is pertinent to know that the US Dow is on its longest weekly losing streak since July 2004. The rating agency Moody’s has warned that possible downgrade of Japan and the US is not ruled out.
The concerns over sovereign debt problems in the Eurozone, anemic growth and job data triggering expectations over QE3 from the US Fed and developments in MENA zone will continue to impact global equity markets in near term.
The domestic news flow for which markets can react in the next few days are EGOM decision on the fuel price hike on June 9, April IIP data on June 10, May inflation numbers on June 14 and Reserve Bank of India’s policy meeting on June 16.
For the week ahead chartists predict trading range of 17,950-18,700 for the Sensex and 5,360-5,640 for the Nifty. Immediate supports for the indices are at 18,120 and 17,950 and 5,440 and 5,330.
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