The markets were rising in the first 2 trading sessions of 2015. The markets rose 2.4 pc in the last trading albeit on low trading volumes. The real test for the markets begin now. There are several reasons for the same.
1. Low volumes were the characteristic of the holiday week, thus making it easier for the markets to rise. When the trading begins in full swing from Monday it remains to be same if the same momentum can be maintained.
2. The FIIs will return on Monday and their support will be critical. In the first 2 days of 2015, they just bought 278 crores worth of stocks when the Nifty rose by 113 points.
3. The Results season kicks off on 9th Jan when Infy announces its results. Markets are usually muted during the results season.
4. Technically, the markets have reached a critical resistance zone. If it breaks the 8400-8500 region it will straightaway head to 9000-9200 range. On the other hand, if it corrects from here, it can test the 7700-7900 band again.
5. There have been a series of ordinances in the last week of December so no further announcements can be expected in the short term.
6. The Gilts are expected to inch lower in terms of Interest Rates. The 10 year bond is trading right now at 7.87 pc. With an expected RBI rate cut, it can head to 7.25 pc - 7.4 pc range.
The next week, should set the tone where the markets are headed at least for the month of January.
1. Low volumes were the characteristic of the holiday week, thus making it easier for the markets to rise. When the trading begins in full swing from Monday it remains to be same if the same momentum can be maintained.
2. The FIIs will return on Monday and their support will be critical. In the first 2 days of 2015, they just bought 278 crores worth of stocks when the Nifty rose by 113 points.
3. The Results season kicks off on 9th Jan when Infy announces its results. Markets are usually muted during the results season.
4. Technically, the markets have reached a critical resistance zone. If it breaks the 8400-8500 region it will straightaway head to 9000-9200 range. On the other hand, if it corrects from here, it can test the 7700-7900 band again.
5. There have been a series of ordinances in the last week of December so no further announcements can be expected in the short term.
6. The Gilts are expected to inch lower in terms of Interest Rates. The 10 year bond is trading right now at 7.87 pc. With an expected RBI rate cut, it can head to 7.25 pc - 7.4 pc range.
The next week, should set the tone where the markets are headed at least for the month of January.
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