The Indian markets shut the lacklustre session on a flat note owing to select buying by funds and late profit booking. It was a sedate start to the week. The key benchmark indices witnessed a range bound trade amid volatility and closed on a flat note with a positive bias. Lack of conviction among investors led to quiet session. Select buying by funds and also late profit booking eroded early gains. The broader market underperformed the Sensex.
Immense volatility was witnessed in late trade with the market retracing sharply from intraday high to slide into negative territory only to rebound thereafter.
The next major trigger for the stock market is Union Budget 2011-2012 to be unveiled by the finance minister Pranab Mukherjee on 28 February 2011. Investors will watch if the Finance Minister announces measures to rein in inflation and inflationary expectations. The Finance Minister may announce a new road map for the Goods & Services Tax (GST). The government may also announce some populist measures in the Budget given that assembly elections are due in Kerala, Tamil Nadu, West Bengal and Assam. In all these states, the Congress is potentially looking to regain power or to retain it.
FOR TODAY: Yesterday's muted closing disappoint marketmen whereas US market reached multi-year highs boosted by positive earnings. It gains further support from the President Obama's wish to lower the Corporate tax rate and eliminate tax loop holes. EU markets closed highest since October 2008. Asian markets are trading in mixed zone as flat. SGX Nifty is trading at 5397 down 8 points indicating Nifty may open around 5390-5400 level. Volatility may be seen. On the upside, if nifty trades above 5404 and 5421, it will try to clear 5460 and 5488 level. On the downside, it nifty breaches 5369, it may hit 5350/5302 level.
ALWAYS PUT STOPLOSS WHILE TRADING. IT WILL SAVE YOUR HARD-EARNED MONEY.
ALWAYS PUT STOPLOSS WHILE TRADING. IT WILL SAVE YOUR HARD-EARNED MONEY.
