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Pre-budget jitters… markets volatile
Deepak Sahijwala & Sanjay R Bhatia
With just a fortnight to go before the next budget is presented,
the markets continue to trade in a range bound trend, with occasional bouts
of a corrective rally. The volumes recorded remain lacklustre and low, as the
bourses witness stock specific action with traders and speculators taking positions
in a few tech counters, while selling index heavyweights. Incidentally, FIIs
remained net sellers on the bourses along with mutual funds during the course
of the week.
The lack of interest on the part of retail and institutional investors, particularly
FIIs have kept volumes and sentiment bearish. Meanwhile, markets continue to
take cues from the global markets—the soon to be announced US interest
rate hike and global crude prices. The budget that will be announced early next
month is likely to act as a trigger and the markets are waiting for it. Overall
the trend would continue to remain range bound with occasional flare-ups and
volatility, but lower volumes. Stock specific action will be witnessed. Already,
any positive giveaways from the budget are being ruled out as expectations are
mixed. In the event of the finance minister turning generous and presenting
sops for the market, a powerful rise may materialize. Otherwise the markets
may continue to drift downward. On the upside, the benchmark BSE Sensex is likely
to witness resistance at the 5000 level. On the downside, the 4648 level is
likely to act as an important support level, if the Sensex falls below this
level it is likely to test the 4134 level.
| The Nasdaq has moved in a range bound trend. The
meeting of the US Federal Open Market Committee on June 30 to decide on
an interest rate hike has kept the US markets cautious. The Nasdaq has continued
to sustain above the 2008 level, which is a positive sign and it is likely
to test the 2050 level in a few trading sessions. On the downside, the 1960
level is likely to act as an important support level. |
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| BSE Sensex |
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