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| Markets expected to move sideways |
| Chandan Kishore Kant / Mumbai Oct 12, 2009, 00:04 IST |
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After last week’s correction, witnessing a dip of 492 points, market experts said this week might continue to see sideway movements with slight downward bias. They opined it was basically the momentum play which took the markets beyond 17,000 points and therefore downside movement was expected.
They maintained that currently the markets are over stretched and any rise in the short-term is unlikely. They ruled out that Reliance’s bonus shares or Infosys’s better than expected earnings will stoke the markets with positive sentiments this week.
In the previous week, CNX Nifty declined 138.2 points or 2.72 per cent on a weekly basis to close at 4,945.20 last Friday against last week’s close of 5,083.40. Similarly, Bombay Stock Exchange Sensitive Index, or Sensex, slipped below 17,000 mark to close the week at 16,642.66, down 2.87 per cent.
Nimesh Shah, managing director, Fortune Financial Securities, said, “I expect the market to move sideways. Though there will be corrections but not too much as market will try to consolidate at current levels.”
Brokers pointed out that this week, Nifty may bottom out at 4,800 levels. It should not come below this as fundamentals of the country are intact, they added.
According to Mohan Natrajan, executive vice president of Edelweiss Securities, “Markets have come up substantially despite the fact that there were no key drivers for such a rise. It was a momentum play while fundamentals remained same. On the valuation side market is still stretched.”
Last week, indices which ended in the green include consumer durables, fast moving consumer goods, health care, metals and power. On the other hand, auto, bankex, capital goods, IT, oil & gas and realty index closed in the red.
Jagannadham Thunuguntla, equity head at SMC Capitals, said, “Markets are facing resistance. It is difficult to expect sectors to outperform. Though some stocks could do well. But it seems, market is not in a mood to hear any good news.”
This week, experts are betting big on telecom, infrastructure, consumer durables and banking space. They held bearish stand on sectors like IT and auto.
Experts said that from this week onwards, corporate earning seasons will start which market will closely watch for. Markets had responded well to the better than expected June quarter results.
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