Macrodata to dictate market movement

Spooked by the US missile strikes on Syria and weak global cues, markets shed most of the gains logged during the early part of the week on the last day of the week.

Gaining marginally, the Sensex and the Nifty ended 86 points and 24 points higher at 29707 and 9198 respectively. Midcap and Smallcap indices have outperformed the frontline indices.

Heightened action was seen in smallcaps; stay invested in good counters for unexpected sharp gains in next few weeks, say punters.

True to expectations RBI maintained status quo in monetary policy. It is pertinent to observe that the Indian rupee kept its bullish momentum intact against the dollar to soar near 20 month high. With roadmap cleared for rollout of GST, focus of market players is now on Q4 results and Monsoon.

Near term direction of markets will be dictated by macroeconomic data (IIP data on 12th, Inflation numbers on 14th), Infosys results on 13th, rupee-dollar movement, FII activity and political developments in the Budget session which closes on April 12.

In coming holiday truncated week market participants will be closely monitoring the global geopolitical tensions which have broke out after US fired missile on Syria.

On the global front, talks between USA and China have been overshadowed by events in Syria. With Greece back on radar, keep track of developments in Eurozone.

For the week ahead, chartists predict trading range of 29200-30050 and 9000-9375 for the benchmark indices.

Support for the indices evident at 29500 & 29200 and 9100 & 9000.