Markets may stay range bound

On the back of expectations of interest rate cut by the RBI in its next meet, rising international  crude oil prices, stable rupee and decision of US Fed to keep interest rates unchanged;  markets extended their winning streak to third consecutive week.

The benchmark indices the Sensex and the Nifty closed 235 points and 94 points higher at 24,953 and 7,604 points respectively. FII buying and positive global cues kept the upward momentum intact. The remarkable rebound in global markets has been driven by a spike in oil prices, fading fears of possible recession in US and global central banks willingness to continue measures to support growth and stabilise markets.

Sentiment got a boost after US Federal Reserve kept key interest rates unchanged and scaled down its forecast for the number of rate increases to two in 2016  from an earlier projection of four.

With two successive holidays before the weekend and no important economic data points in the coming week (24, Thursday-Holi and 25, Friday-Good Friday), expect range bound consolidation in the week.  For the truncated week ahead, chartists predict trading range of 24,500-25,400 and 7,425-7,775 for the indices. Key supports for the indices are at 24,650 and 24,450 and 7,500 and 7,425.
Just a few weeks ago the markets were in full meltdown mode, with many predicting the bull market was on its death bed.

Those who panicked got punished. With last quarter earnings season around the corner, start accumulating quality companies with steady growth and earnings visibility. Before buying a stock find out everything about the firm, its management and competitors, its earnings and possibilities for growth.