Market Brief – Mix news flows kept the markets jittery and volatile during the week, with oil prices hitting the roof top as a result weakening dolour, Govt envisaged to further hike of oil prices may cause inflation and cost of production to go up and perhaps may decrease the consumption, although the monsoon appears to be normal would negate some the problems faced by the economy. Despite slow down in the economy and lack of drastic policy action by govt, the PE multiple still favour the bulls unless reported weak corporate earnings, may be a setback for the markets. Sectors that are likely to do well are the information Technology, Consumer Good & Services (including the FMGC), very selected Pharma and Industrials.
Technical– In the absence of any significant news flows the markets once again traded in a range and amid volatility ended the day on Friday on a robust note, however the week ended marginally lower. Range bound trade is likely to continue until the Nifty closes above 10950 and Sensex closes above 36000. On the lower side first very, important support exists at 10550 closes below this the nifty will be poised to test 10400 the final level to watch in medium term. For extremely long term 9300 is vital support and the market is less likely to test that. The near term range for Nifty is 10550 and 10950, from a medium term perception 10400 and 11200 remains important range.