|Market This Week
||Last week the NIFTY closed at 8485 registering a gain of 1.24% over last week. This could be termed as a recovery rally but doesn’t look sustainable. This week onwards the markets would wait keenly for the Greece vote which would decide whether the creditors’ proposal will be accepted for the bailout package. The exit of Greece from the EURO region will make the markets volatile in the short term. Apart from the Greece crisis, the markets would start factoring in the quarterly results, industrial production data and the week monsoon in the last couple of weeks. Considering the phase the Indian stock markets are in right now, where the story is promising, it will factor in all these events, forget them in a while and keep moving for sure . We need to consider the fact that our rally started precisely in SEP 2013. It was a one way upward move for close to 18 months and now the markets have been consolidating for the last 4 months or so. This was bound to happen! The only question was when? Now, technically this consolidation is going to prove very healthy for the markets in the coming times. Valuations would become cheaper and stocks would take a breather. This is certainly a good time for all investors to enter into “Delivery” stocks. Volatile and consolidating markets may not be very suitable for “Momentum” stocks. We still feel that the markets would bottom out at 7800-7900 which will now act as a good support. 8000-8500 will be the consolidation zone for NIFTY. Let’s wait and watch where does NIFTY move on from here. In the short term a move in any direction is possible but the long term story is still very positive! All the best!