Markets Next Week: Continue To Expect A Firm Trend

The markets ended near record highs and ended the week higher. Global cues were also supportive with most markets from Europe to US, seeing a firm trend.

This week the Nifty made a high of 12,034 points, but couldn't manage to sustain at this level. From the past 12-days the Nifty is trading in a range of 250 points with support at 11,784 points and at upper level resistance of 12,034 points. This could be a crucial level as a big movement on either side will give a direction to the market.

For the current week the Small Cap Index closed at 5675 points and made a low almost 1% from its high of 5762.

The Telecom sector fell by more than 4 per cent during the week as the Supreme Court asked companies to pay Rs. 92,000 crore related to AGR. Vodafone Idea shares fell to an all-time low of Rs. 2.61, but subsequently rose 25 per cent to close at Rs. 3.75 on Friday after news of government mulling sops and floor price regulations for the industry. Bharti Airtel shares rose by 9.24 per cent on Friday.

Sector Analysis

This week, Private Banks were the only major sector which was up by 1%, rest ended almost flat. Carbon (7.05%), Packaging (1.36%), Gold & Jewellery (1.33%), Healthcare Services (1.28%) and Home Appliances (1.27%).

Top 5 companies were H.G. Infra Engineering (40.19%), Dixon Technologies (India) (20.23%), Titagarh Wagons (15.28%), Essel Propack (14.46%) and Creditaccess Grameen (13.36%).

Going ahead it is likely that we will see the markets move in a tight range and a significant break-out on either side is ruled out. Investors will look for clues from the global markets, which are unlikely to be too volatile.

It is advised that investors should trade with caution, give the way the markets have run-up in the last few weeks.

Information courtesy: Dynamic Levels