Market View: Week Starting 28th DEC 2015

Filed in Market Update by on December 28, 2015
Week Market View: Week Starting 28th DEC 2015
Market This Week The year 2015 was a year where NIFTY entered into consolidation since March. There was uncertainty across the global markets with trouble in China, weak macroeconomics, volatile crude, weakening rupee, delay in domestic reforms, poor corporate earnings etc. Despite all this, the markets did provide decent returns to a disciplined investor. Now the strong consolidation that we have been seeing for the last 9 months or so has laid a strong foundation for the next run. It’s unfair to say the NIFTY has bottomed out but it has factored in for almost all the situations that we always worried for. It has managed to sustain and hold which is a very positive sign. It seems now it can only move up from here. Therefore we have enough reasons to be positive in 2016. Sectors like Pharmaceuticals, Aviation, Oil, manufacturing, Infrastructure are likely to do well. Real estate and IT could underperform. Let’s be disciplined in the coming year. A disciplined investor always has less to lose and more to gain.
Last week the NIFTY closed at 7861 registering a gain of 1.28% over previous week. As mentioned last week we are in a short term consolidation range of 7600-8300 where any move below 7600 and above 8300 could trigger a new direction. Till then we would continue to get stock specific movement. Again, we expect less activity this week due the FII’s celebrating their vacations. A clear trend for the NIFTY will show up starting next year or post third quarter earnings. Till then let’s be cautious and have a stock specific approach. We wish you a very happy and prosperous new year in advance. All the best!

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