Benchmark indices ended the week flat, even as there was intra week volatility, as global cues continued to worry investors.
Towards the middle of the week, it looked almost certain through online opinion polls that Britain would vote to stay out of the Euro. However, the killing of a top politician in the US, by a pro exit supporter, may have tilted in favour a no exit, due to sentimental impact of the killing.
This led to some recovery across global markets on Friday, particularly in Asia and Europe. On Friday, a weaker yen contributed to gains in the Japanese index, which pushed Asian markets higher.
But clearly the week was all about PSU banking stocks, which saw a solid rally, following new norms by the RBI and also merger approval for SBI and its associates.
Coming into the next week, there is going to be immense volatility due to the Brexit. We believe that the chances of an exit are more like a 50:50. Most online polls and analysts have got it wrong in the past.
Britain's largest newspaper the Sun, asked voters to vote for a Brexit. While before that the scales were tilted sharply in favour of an exit, it looks like we have more of a 50:50 per cent chance after the killing of a politician.
If you are a trader, who is going to trade next week, we suggest that you place strict stop losses, before you trade. The chances of losing money is very bright, due to the volatility.
Markets may not have factored a Brexit completely and if you are on the wrong side of the result it could be a disaster. Markets falling about 5 per cent, following the Britexit is not ruled out.
If that does happen, gold should be the next big bet for investors. The precious metal is the best performer this year.