Range-bound trade can’t be ruled out Market Khabar

Amidst alternate bouts of selling and buying, enthused by good monsoon, positive global cues and better than expected results from Reliance and Wipro, markets ended unchanged during the week ended.

Benchmark indices the Sensex and the Nifty closed on a flat note at 32,022 and 9,915 respectively. Renewed buying from FIIs kept the sentiment positive. Market players expect consolidation in near term.

Global rating agencies are enthused that GST, which came into force earlier this month, has seen implementation without undue disruption.

Observers say that if the government wants this reform to be a lasting success, the government should keep working on simplifying the system — narrowing exemptions as far as possible and reducing the number of tax brackets to one or two.

Monsoon session of Parliament would see the government push its economic agenda of tax reform, infrastructure spending and deregulation.

It is pertinent to observe that politics make great headlines, but it’s the economy that makes for great bottom lines. Steady growth, combined with low interest rates and little inflation, could drive corporate profits — the real driver of stock prices — even higher.

Near term trend will be dictated by the progress of monsoon, Q1 earnings, investment pattern of FIIs, US Fed meet outcome and crude oil prices. Possibility of directionless and range bound trade for some weeks is not ruled out.

For the week ahead, chartists predict trading range of 31,600-32,500 and 9,700-10,075 for the indices. Key supports for the indices are at 31,800 & 31,600 and 9,800 & 9,700.