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India Markets Weekahead: ‎Tough for the Nifty to break out of its range

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

The Nifty continued its upward trajectory to close at a two-week high of 7,792 in a holiday-truncated week. However, this optimism was not reflected in the broader market, especially the mid caps and small caps.

Among the sectors, public sector banks, realty, infrastructure and capital goods, which led the rally earlier, have underperformed in the last few weeks whereas defensives such as FMCG, pharma and IT stood out, an irony when markets are close to a record high.

Macro data released during the week wasn’t encouraging with consumer inflation, especially food inflation, continued to soar whereas IIP data indicated a renewed slowdown. Exports data released on Thursday indicated that they grew faster than imports, though the deficit touched a high of $12.2 billion.

The Nifty has been in a broad range of 7,500-7,850 since the last two months despite FII. flows of about $2.3 billion during the period. This can be attributed to a lack of substantial triggers to push the markets into a new zone. The hopes and expectations of investors with the new government were reaffirmed with the statement of intent but it seems the markets would await the execution of that intent to break out of the range.

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.

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