Mumbai, March 29: A wave of consolidation is likely to
greet the Dalal Street this week as the bellwether Sensex,
which regained the 10,000 level last week, is expected to
retain the positive momentum, analysts say.
"Markets need to consolidate before they see any big
rally. It would remain volatile and a sideways consolidation,
with a bias towards the higher side is expected," SMC Global
Vice president Rajesh Jain said.
Analysts said that the domestic institutional investors
may book profits they reaped last week.
"There will be no outright fall in the market. Some
corrections are expected this week as investors resort to
profit taking to cash in on last week`s counter rally," Jain
added.
The BSE Sensex gained over 1,082 points in the past week
and closed at 10,048 points on Friday, while the National
Stock Exchange`s Nifty index ended with a gain of 302 points
at 3,108 points.
"The domestic markets are over heated and a slight
downtrend is expected next week. The fall in the US markets on
Friday, signals a likely correction here," Taurus Mutual Fund
Managing Director RK Gupta said.
On Friday, the US market ended in the negative zone with
the Dow Jones Industrial Average dropping 148 points to 7,776
and the Standard & Poor`s 500 Index falling two per cent to
816 points.
However, analysts are upbeat that early next week, being
the closing of the current financial year, the markets here
would hold on the gains.
"The first two days of this week being the last trading
days of the current fiscal year, we would see Mutual Funds
investments, which would increase their Net Asset Valuations
(NAV). In the later part, some corrections are expected as the
markets are over bought," Ashika Stock Brokers Research Head
Paras Bothra said.
Indian markets would remain closed on April 3 on account
of Ram Navmi.
Marketmen said that the gains in the past weeks is not a
indicator of a rally as the market is likely to see a
correction once again.
"Only after observing the movement of the markets for
the coming two months we can conclude whether it is a new bull
market or a big bear counter rally. At present, people should
look at small buying," Jain said.
Meanwhile, foreign institutional investors were net
buyers last week, becoming net investors in equities worth Rs
1,393 crore. They have been net sellers in equities worth Rs
6,733.50 crore so far this year.
"FIIs are realising that actual growth potential lies
with the economies of India and China. They would continue
with the investments till some bad news come from the global
economies, which will make them cautious," Jain added.
Bureau Report
