Market Khabar

Markets witnessed profit booking/ selling pressure after Nifty registered an all-time high of 9212.85. Indices fell in three out of five trading sessions during the week ended. Benchmark indices, the Sensex and the Nifty dropped by 228 points and 52 points closing at 29421 and 9108 respectively.

Hope has been the dominant emotion since the outcome of UP assembly elections. Recent market weakness may suggest optimism could be fading.

Good monsoon, GST rollout without hiccups and revival in the broader economy may put the markets back on rails in next few months. Probability of an El Nino formation in 2017 has led to some worries about monsoon season. Near term direction of the markets will be dictated by the macro economic data, global cues, the movement of rupee against the dollar and crude oil price movement. Stellar debut of Avenue Supermarts has put primary markets back in focus. It is pertinent to observe that Avenue has mcap of `39,998 crore, more than the combined market value of four of its rivals. Irrational exuberance say observers.

Inability of the Trump government to repeal and replace Obamacare has cast shadow on expected tax reforms and fiscal stimulus. Emerging markets are likely to benefit from the uncertainty. Gold too is going back into style. Punters expect a short sharp rally in gold in next few weeks.

For the week ahead, chartists predict trading range of 29000-29850 and 8975-9225 for the benchmark indices. Support for the indices evident at 29200 & 29000 and 9040 & 8975. The market is likely to remain in a sideways pattern with firm undercurrent. Investors should remain invested and traders should buy on decline with strict stop loss.