Hyderabad: Bloyed by hefty fII inflows, stronger rupee, positive global cues and improvement in macroeconomic data; markets witnessed exuberant trading during the week ended.
On the BSE, the Sensex closed 585 points higher at 22,340 and the Nifty on the NSE ended with 201 points gain at 6,696.
It is pertinent to observe that FII purchases are more than Rs 20,500 crore of equity in current month so far, the highest inflow since May 2013.
Indian rupee witnessed almost 13 per cent appreciation from August lows and is the most outperforming currency in the emerging markets.
Reserve Bank of India (RBI) extended the deadline for banks to fully implement the stringent capital requirements under Basel III by a year due to industry wide concerns over potential bad loans and its impact on profitability.
With inflation moderating at a faster pace since the last policy meeting of Reserve Bank of India, observers expect a dovish and growth-oriented policy from the Reserve Bank of India on April 1, 2014 chartists predict trading band of 22,900-22,650 for the Sensex and 6,485-6,850 for the Nifty.
Immediate supports for the indices are at 22,200 and 22,000 and 6,630 and 6,555.
With indices in un-charted territory, expect volatile two-way moves anytime warn old timers.
Auto sales numbers, the Reserve Bank of India policy, fourth quarter earnings and global cues may dictate the near term movement of markets.
Invest, don’t guess. Swinging for the fences with a series of plausible half-baked speculations is fearfully expensive, both in the brokerage costs and perhaps even more so in the opportunity cost. Only buy what is cheap right now, or almost sure to grow so fast that it very soon will have been cheap at today’s price.
