The carnage in the markets following liquidity tightening measures by the RBI has been immense.
Next week is going to be important to see if the markets keeps trending lower. The week is a truncated one with the exchanges closed on Thursday for Independence Day.
It's also a data heavy week and the results of State Bank of India and Tata Steel will be closely watched.
Both these stocks have been hammered out of shape and have hit their 52-week lows. Investors would also look for economic data including IIP and inflation. Now, both have been trending lower in the last few months. Ideally, investors would like to see the IIP number higher and inflation lower, which could lend support to the markets.
As usual markets would also take cues from international developments. It would also track other Asian and European markets closely, though, over the last 1 month these markets have witnessed some stability.
On Friday, stocks in the US ended the week in negative territory, with major indexes closing at their worst since June.
The real worry for domestic and global markets has been the worry over tapering of quantitative easing in the United States. There's going to be immense volatility in the next few weeks on account of these tapering worries and markets should be prepared for the same.
Buying stocks needs some courage in the present times.