Political situation to set mkts course ahead: Experts

The markets ended the volatile week on a high. The indices shrugged off a sluggish start and powered ahead to close with handy gains. Nifty closed at 4,016 up 90 points, while the Sensex shut shop at 13,454 up 360 points.

The major losers this week were Adlabs and Nagarjuna Fertiliser while the major gainers were Orchid Chemicals and Shree Renuka. Inflation for the week-ended June 21 is at 11.63% versus 11.42%.

Where do experts see markets heading?

Ambareesh Baliga of Karvy Stock Broking believes that there is buying in this market and the local big boys are back and have started buying. He further said that local institutions have been buying for the last couple of days and are trying to support the market at lower levels.

Baliga feels that selling, which is coming from hedge funds, is tapering off because the June blues are over and most of the redemption pressures which are there on them are over as of now. So, there is not too much of selling coming from Foreign Institutional Investors, or FIIs. According to Baliga, only time will tell whether this is a temporary bottom for the time being.  

Sandeep Nayak, Senior Vice President and Head-PCG, Kotak Securities said, “If the market is able to stay beyond 4,070, which is the volume weighted average price of the Nifty July series, then you have to trade long for a while, though the overall trend is bearish. One has to have a cautious view. In this market, you have to trade both directions-long as well as short- with strict stop losses.”

Nayak feels that if this pullback is able to carry on till 4,070 and the market trades beyond that, we could see the intermediate trend becoming positive for the short term and the bulls will gain momentum beyond this level in certain sectors, especially real estate and banks, where there was an excessive short build up seen over the past few days.