Tuesday, December 14, 2010

How will markets trade for the rest of Dec?

The sun seems to be shining once again on the indices which ended in the positive terrain for a third straight trading session on Tuesday. The Nifty managed to hold on to that 5,900 mark and ended at 5,944 while the Sensex shut shop 107 points higher at 19,799.

Even as investors continue their gradual return after last week's big selloff, experts wait with bated breadth for the year to end with a positive note. Gaurav Doshi, vice-president, equity specialist for PMS, Morgan Stanley Private Wealth Management India says, the market will drift within a broader range this month. “A move above 5,950 on the Nifty Futures, as per our analysis, tells us that this market could witness a little more of short covering that could creep into the system. So, all in all, we don’t have really any major conviction on the Nifty till about January 10, 2011.”


Jitendra Sriram of HSBC AMC beleives the trend is stable. “The markets had a healthy correction and will look to consolidate from hereon. They will probably look towards the kind of allocation that is coming in from the foreign institutional investors (FIIs) early next year,” he explains.

However, Rahul Mohindar of viratechindia.com feels that if the market breaks 6,070, it does bring in a significant reversal. “There are some interesting spaces building into midcaps stocks. We are looking at some strength emerging within IT. So, in the next two-three weeks, I would expect a major breakout amongst IT stocks.”

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