Pre-Market: Expect D-Street to bounce back

Analysts say the Nifty will continue to trade in a narrow range of 6,000-6,200 in the week ahead

After ending on a nervous note last week, stock investors are expecting the recent pessimism on Dalal Street to subside, with Reliance Industries posting better-than-expected December quarter results. While shares of companies whose results are due would be in focus, investors will closely watch China's fourth quarter gross domestic product (GDP) numbers, which might have a bearing on sentiment in Asian markets.

Analysts said shares of metal companies could come under pressure as Chinese economic data is expected to be weak.

The markets ended a volatile week down marginally by 0.3 per cent. On Friday, the BSE Sensex closed at 21,063, down 0.9 per cent from its previous close. The National Stock Exchange was down 0.9 per cent to end the day at 6,261. Reliance shares ended marginally lower at Rs 884.55 on Friday. The company announced the results after trading hours on Friday.

Analysts said the Nifty would continue to trade in a narrow range of 6,000-6,200 in the week ahead. "What appears is that at highs, the market is unable to hold on and looks tired and stressed. But at lower levels, it finds a reason to move up," said Dilip Bhat, joint managing director, Prabhudas Lilladher, adding the markets might not be able to move below 6,000.

"Further upsides are likely in the coming week if the Nifty can hold above the immediate supports of 6,230. Else, the bears could gain control and push the markets lower," said a note from HDFC- Securities.

Mid and small-cap categories could also see some activity though brokers warn against fresh purchases in many of them. "The movement in the mid-caps has been driven largely by rumours. Others have been rising in anticipation of a turn-around in their balance sheets," said Bhat.

The week ahead could see movement in some of the large-caps like Larsen & Toubro, HDFC and Cairn India, ahead of their December quarter earnings announcements.

Foreign institutions were net buyers of equity through last week at Rs 1,578 crore while domestic institutions were net sellers at Rs 1,756 crore, including provisional data on Friday.

Analysts said news of the tapering had been discounted by the markets and would not therefore impact foreign flows.