The Week ahead 30/04/2007 to 4/05/2007
Posted by dipanksaha on April 30, 2007
Market is wisdom…market is knowledge. Its a debatable fact that cumulative knowledge is more accurate and effective. But following cumulative knowledge often hint us regarding whats actually happening on the street. The theory of technical analysis stands on this simple fact.
Recently, our share market took another downturn on Friday and settled after a solid and steady decline. There were reasons behind this move. SEBI took regulatory move against some scrips following some alleged manipulatory rally in those scrips. Besides, Asian markets were not in good shape either. Resultant was Friday’s fall.
But apart from these news and facts, market players were not either much desirous of unabated rally. Matter of fact is that continued rally from 3600 made many players skeptical. They are much ready for ranged market. And thats what we are going to see in coming days.
Downside for spot Nifty would be 3900-3950, because results that corporate houses are delivering are not disappointing in any extent. Besides, annual credit policy for 2007-08 is quite encouraging. Accommodative monetary policy would boost market players and companies in coming days.
Appreciating rupee will ease RBI’s job of tackling inflation as strengthening rupee would make importables cheaper. Supply constraints of primary goods could be less chaotic. And price volatility should subdue.
Overall, picture ahead is less suffocating and bumpy. Market will remain stick to its range and continue testing our patience. Monday opening should be less dramatic. And After today’s of trading holidays, there should not be much hue & cry, visible, in last two trading days of this week. As we know, market keeps on fooling us around, any sudden irregularity won’t be difficult. But core tone of the market should be intact and ranged!!!
