Blue-chip cos' Q1 result to set terms

Absorbing the modest rate cut by RBI, continued border standoff with China and inconsistent progress of monsoon, markets managed to post gains for fifth consecutive week.

The benchmark indices, Sensex and Nifty ended 15 points and 52 points higher to close at 32,325 and 10,066 respectively.

It is pertinent to observe that FIIs turned net sellers in both the cash and derivatives segments. However, the DIIs remained buyers during the week.

The breadth of the market remained negative amidst low volumes signaling possible short-term weakness.

After border tension with China, the Centre has levied anti-dumping duties on a number of chemicals and other products imported primarily from China. Domestic companies are direct beneficiaries to these developments which will positively impact their profitability.

With election of both the President and the Vice President behind, all eyes will be on the passage of crucial bills in the current session.

Near term direction of markets will be dictated by Q1 results, progress of monsoon rains, domestic and global macro-economic data, trend in global markets, investment by FPIs and DIIs, the movement of rupee against the dollar and crude oil movement.

With heavyweights like Tata Steel, Britannia, Tata Motors, Aurobindo, Hindalco, BPCL and Cipla scheduled to announce quarterly earnings, next week will be dominated by stock specific moves.

For the week ahead, chartists predict trading range of 31,700-32,800 and 9,850-10,200 for the benchmark indices. Support for the indices evident at 32,100 & 31,800 and 9,975 & 9,850.