We could witness a rebound next week, at least initially if trend in European and US markets on Friday are any indication. US and European stocks advanced after the second-quarter GDP revision for America came in higher than consensus forecast. There could of course be a reversal and stocks in the US and Europe could turn lower. So, keep a close eye on global markets and then take a fresh call on Monday morning.
Overall, the outlook continues to be uncertain given the mounting concerns over slowdown in the US and other key regions of the world. Lots of new economic data from around the globe will keep the investors on tenterhooks and might lead to higher volatility. Sentiment will swing between agony and ecstasy based on the data, especially from the US and China.
As far as India is concerned, we will get the latest update on the trade data on the first day of September. New month also means data on Auto and Cement sales volume. Talking of data, core sector growth in July improved from June. Select stock centric action will continue as investors may remain reluctant to add to their holdings of large caps.
The key indices could turn choppy due to murky near-term prospects but will mostly trade in a range. A major breakout out of the current range may take a while to materialise. One has no choice but to adjust and adapt to the current trend. Building aggressive positions at this juncture might be a touch risky. So, wait for some more cooling and one can pick up a few good bargains.
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