Benchmark indices ended the week higher and closed at 2 month high. The week saw gains in the Nifty and the Sensex of about 0.4 per cent.
Individual stocks mostly reacted to their results and select stocks saw a good rebound in trade. Among these were stocks like Force Motors and Sun TV Network.
IT stocks also saw some buying during the week after Cognizant surprising with its results. Many foreign brokerages continue to prefer tech stocks and have suggested buying the same at lower levels.
Markets may continue their momentum built in the past week and may see a rally on solid strong inflows. Already the EPF has begun investing in the Indian markets.
Apart from this domestic mutual funds are seeing solid inflows as gold prices keep falling and real estate is also seeing a slump. The inflows from small investors into the markets could continue to see the stock markets rally.
Many investors are suggesting buying into tech stocks.
With most of the major corporate out with their results there is nothing much to look forward in the earnings season, except a select few like State Bank of India, which have yet to announce their results.
Globally, there are not many cues and investors would react to the US non farm payroll data to see if the US Fed hikes interest rates in Sept. This could be one of the key triggers for the markets next week.
US markets have posted losses for 7 straight week and this may have an impact on markets when they open for trade on Monday.