|Market This Week
||Last week we saw some quick rallies which made NIFTY close at 7789 registering a gain of 1.75 % over last week. The markets stabilized a bit after those nasty falls. That’s because this time around the markets have shown good participation from all types of investors. They feel (and are right in a sense) the markets are attractive and hence the buying begins whenever there are corrections. This investor behavior could be attributed to poor returns from real estate, deposits and gold. However, the NIFTY still remains in an indecisive mode. On a short term basis 7500 is a very important support and 7900 will act as a strong resistance. Any move below or above the support and resistance level will trigger fresh sell or buy in the short term respectively. This week, the markets would have their eyes glued on the FEB meeting. They would expect no rate cuts from FED and instead a rate cut from RBI (looks unlikely). These events certainly have an impact on the markets but if the Indian markets are to move forward strongly and consistently then the Indian reform story needs to be strong. With the BJP trying to win every election so that the reforms can be speed-ed is a good sign. The next set of events to watch for would be the quarter results, the tabling of GST and election results in Bihar. Let’s hope for the best outcomes. This week being a short one and with no triggers is likely to be more or less flat. Let’s have a cautious approach. All the best!