Mumbai: Markets closed at its weekly, monthly and quarterly highs and experts expect the Sensex to test its previous high next week. While the support lies in the 12300-12100 area one can expect bit of a resistance in the 12600-12700 zone.
However, oil hardening above US $65 can bring some bearishness. A 300-400 point correction can also be expected going ahead.
Says Fortress Financial's Upendra Kulkarni, "Markets on Tuesday will be in a positive mood. They may be a little range bound with a positive bias. Oil is the only bit concern going ahead."
"I am expecting a short-term correction. However, when that will happen is a difficult call," he says adding that it is time to hold.
"The market was expecting a correction over the past couple of weeks but has not happened yet. In the longer term, however, we are in a secular boom phase. For somebody who can play the game of patience it is the time to hold," says Kulkarni.
He feels that this bull phase was sort of reconfirmed with the Centre for Statistical Organisation’s, CSO, GDP growth figure for Q1 of this fiscal at 8.9 per cent. This is a little more than the consensus estimate of 8.4 per cent.
According to technical analyst, Hitendra Vasudeo, "Looking at the overall market the Sensex has closed at its highest ever weekly, monthly and quarterly closing. From that perspective there is lot of strength in the markets."
Vasudeo expects a positive week ahead with some intra-week fluctuations. "We could possibly be testing the all-time intra-day high of 12672 next week."
"Overall the markets look quite okay till we continue to trade above the current week’s low that was at about 12145. There is a strong support zone between 12300-12100. Any minor dips from current levels would just be a part of that rising move," says he.
Vasudeo feels that the resistance would be at around 12600-12700 levels as the markets make a move to test its all-time high.
Investment advisor, S P Tulsian, expects the markets to remain a bit soft next week. He feels that August and September have been very good and that what is needed is a consolidation for the next leg of the rally.
However, Tulsian says, a surge is expected to be back in the markets after the Q2 results. "I expect a 300-400 point correction in the near-term."
Crude prices have again started hardening after touching a low of US $57 per barrel. Crude hardening above US $65 will be a bit negative for the markets.
Comments
0 comment