Investors look for Modi cues

The week ended was a volatile week for investors, but it ended on a high note on the back of highly impressive performance of the BJP. For the first time in three decades, a party has won the general elections with majority seats on its own.

The outcome, which was better than most exit polls had anticipated, propelled the market to new highs.

Benchmark indices the Sensex and the Nifty vaulted by five per cent to close at 24,122 and 7,203 respectively. Frontline stocks from real estate, banking, capital goods, power, oil and gas and metals were among the top performers.

The mid- cap and smallcap stocks also joined the party. Momentum buying has become the order of the day. Focus of markets in next few days will be on the allocation of key ministerial portfolios and the first Budget of the new government expected by July 2014.

Analysts expect FII moves, global cues and the movement of rupee to dictate the near term trend in markets. For the week ahead, chartists predict a wide trading range of 23,700 and 24,800 for the Sensex and 7,025 and 7,450 for the Nifty. Immediate supports are at 23,900 and 23,700 and 7,125 and 7,050. Markets may pause before crossing last week’s highs, say experts.

Do not equate investing to gambling. In fact, longterm investing is really the opposite of gambling. In gambling, the more you play the greater the odds that you lose. In investing, the longer you invest, the greater the odds that you generate positive returns.