Markets Next Week: Indices May Stabilize At Current Levels

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It was a breathtaking week for the markets with enormous volatility that has not been seen in recent weeks. Banking stocks plunged through the week, only to recover later on Friday. Most marquee banking names like ICICI Bank, State Bank of India, Bank of Baroda, Axis Bank plunged to 52-week lows.

After a dramatic fall through most of the week, the markets staged a phenomenal recovery on Friday. This led to a fall of just 0.2 per cent for the Sensex for the week. Interestingly, the bank Nifty showed a sharp recovery and ended almost 2 per cent higher, led by names like ICICI Bank and State Bank of India.

The midcap index had no such luck and ended the week almost 2 per cent lower.

Markets Next Week: Indices May Stabilize At Current Levels
Oil prices also rebounded on Friday and were last trading above the USD 31 a barrel as cold conditions swept the United States and Europe.

Going ahead the markets may continue to see some recovery in trade early next week. Much would depend on how the Chinese market and crude oil behaves. If the Chinese markets fall, expect a steeper fall in our markets.

It would be a truncated week, as markets would be closed on account of Republic day on Jan 26. Much would also depend on the results of most companies scheduled next week. Closely watched would be the results of ICICI Bank, for further signs of deterioration in asset quality.

The bank Nifty has heavy weightage on the index and hence good results from ICICI Bank can easily propel the markets.

All in all, there maybe lesser volatility as compared to this week, though the earnings season, crude oil prices and china would be closely watched.

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