Market Brief – With mix news flows the markets remain volatile during the week and ended the week lower, although the Global markets did well but Indian markets were jittery due to some political upheaval with BJP losing all the Lok Sabha by polls and TDP Govt. Of Andhra Pradesh withdrew there support with NDA further breed uncertainty. Going forward Quarterly results of March, Monsoon forecast, Outcome of political uncertainty, Crude & Commodity prices and Global markets cues will all determine the market trend. Since uncertainty and volatility has gone up Investors are suggested to remain partly in cash say about at least 15% to 20%, to be deployed once the stability is back in the market, Nevertheless it appears that market during this year 2018 will continue to remain volatile, Assembly and General Election and implementation of reformed process will be instrumental for the markets. A cautious and stock specific approach should be the order of the day.
Technical– Technically market looks weak and vulnerable for more fall, a trade and a close below 10000 would swiftly extend the correction initially to 9800 and then 9600. On the higher side 10500 – 10650 is a tough resistance area and unless the Nifty closes above 10650 it would remains under selling pressure, the Short term range for the market is 10140 (the low registered on Friday 16th March) and 10400 on the higher side and the broader range would be 10000 on the lower side and 10400 on higher side. Although the market look weak and vulnerable in Short and Medium Term, but the long Term Trend is still up.