US President-elect's speech to set tone

Supported by positive global cues, stronger rupee and expectations of lesser than expected impact of demonetisation; markets closed modestly higher during the week ended.

Benchmark indices, Sensex and Nifty surged by 133 points and 58 points to close the week at 26,759 and 8244 respectively. Worries over possible delay of Budget due to announcement of mid term elections in five states and concerns over H1B Visa reform bill in US have kept markets on edge.

Advance GDP estimates have indicated growth at 7.1% without factoring demonetisation effect. It can be observed that US Treasury yields have started to fall dramatically and correspondingly precious metals too have bounced backed sharply.

Contrary to many predictions, the Dow has surged more than 1,600 points since the election on hopes that Donald Trump’s stimulus plans will unleash US growth.

Clear signal for possible weakness in emerging markets. Near term direction will be governed by demonetisation impact on Q3 results, macro economic data, news conference of US President-elect ahead of his formal inauguration on January 20th, movement of rupee against dollar and international crude oil trends.

For the week ahead, chartists predict trading range of 26200-27250 and 8025-8425 for the benchmark indices. Support for the indices evident at 26375 & 26050 and 8125 & 8025.