Markets may continue to remain range bound next week

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Markets may continue to remain range bound next week
Markets exhibited a steady trend this week, with some consolidation at higher levels. As we head into the next week, markets would be worried about the reforms process and the logjam in parliament. Investors would not wait indefinitely for the reforms process and would look to sell, if there is no fresh initiatives from the government front.

"Stock bulls in India "are now getting edgy" according to a JP Morgan report on Friday, as the government has yet to deliver on key reforms, while economic fundamentals have "deteriorated,"a Reuters report has stated.

The investment bank says investor hopes India would deliver reforms after presidential elections in late July have been dashed, while Parliament has been stalled because of the fallout of the controversial coal concessions to private companies.
Investors are likely to remain on the edge in the next weeks, if the government does not deliver on the reforms process. Investors are particularly looking at reforms like diesel de-regulation and FDI in multi-brand retail.

This week markets are likely to continue to look at global cues and directions from Europe. Any hopes of fading easing measures is likely to result in markets shedding gains.

Markets would continue to exhibit volatility and investors are advised against going long in the markets.

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