|Market This Week
||Last week there was volatility and nobody really cared for NIFTY after the crashes of IVRCL and HDIL. Sentiments were spoiled, investors were worried and stocks took a beating. Friday, the market again won the lost ground which was good to see. On the positive front, Chidambaram’s entry into the finance ministry has improved the market sentiments. The earnings of this quarter has been good so far. FII’s who generally look at earning growth and valuation from our corporates have been impressed so far with the numbers and hence FII flow into the markets is intact as seen below. Also the government spending has improved and the currency looks stable. A lot of good policies have been passed and finally parliament has started it normal functioning. At least a 25-bps rate cut is expected as far as RBI goes. All this has given strength to NIFTY and hence the bulls will continue to dominate for now. The corporate results so far have been good but the subsequent results are yet to be countered for.
The markets will take notice of all the events happening and maybe this week or the first week of February, the markets could direct its next move. For now it will continue to be range bound. So at current levels let’s be on the sidelines and watch for opportunities at dips or close to stop losses rather than rushing to commit huge amounts. The midcap sector has looked a little vulnerable though it still has stocks to offer which are sound and steady. One should be a little cautious while entering into them. Buying on dips is recommended. Overall we are well poised!