|Last week was not a very good one with NIFTY falling on a continuous basis. Poor volumes were seen. The current fall should be seen as a correction as it looks like the markets have over-built on expectations. It is not able to sustain the current highs. The bulls would be in power as long as 6120 is not taken off. We have something to worry once this support is taken off. There could come strong resistance at 6250. This week will be volatile and hence we must be very cautious. Volatility might trigger stop losses and hence low risk taking investors should stay away from the markets this week.
Overall, no panic situation seen. FII’s inflow is likely to continue in 2014 as well. The short term trend looks volatile and we should be ready for corrections coming in frequently. Long term prospects for 2014 look good. This year will be a very important one for the stock markets. A good base built in this year would make the coming years good for investments. IT and Pharma are to watch out for.