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Markets Weekahead: ‎Time to book profits and not be greedy

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

The highlight of the past week was a stupendous 3 percent rally on Friday with the Nifty ending at a record high of 6858. Investors were in a sombre mood earlier in the week, when the market was threatening to break a crucial support level around 6650.

The sudden turn on Friday and the ferocity of the move took most participants by surprise. It was a combination of fresh buying as well as short covering which resulted in a near 200 point rally. It seemed everyone wanted to join the bandwagon due to the fear of missing a bigger rally.

A broker looks at a computer screen at a stock brokerage firm in MumbaiMacroeconomic data due in the coming week includes WPI and CPI for April. IIP data for March would be declared on Monday. In case the data is favourable, it would aid the mood on the street but a negative one will not dent the mood as all eyes would be on the exit polls which should start flowing in by the evening.

Friday’s move was restricted mostly to  large caps, especially the index stocks, but over the next few sessions we should see the rally extending to the rest of the market.

India market weekahead – Partial profit-booking may be prudent before election results

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(Any opinions expressed here are those of the author and not of Thomson Reuters)

The so-called “rally of hope” stuttered during the week as Indian markets turned volatile. The Nifty closed at 6695, down 1.30 percent. The fear of the El Nino effect and the IMD forecast of below-normal rainfall seems to have made investors cautious.

With election results two weeks away, investors need to take a stand in the next few days. Although there can be a number of outcomes, only two would be termed positive for the markets – a landslide victory or a comfortable majority to form a stable government. The other scenarios such as a fractured mandate, a third front coalition or a weak UPA or NDA coalition would deflate the sentiment built up till date as the markets have already discounted a favourable outcome.

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