Volatility with negative bias
At the end of all the ups and downs of the Sensex, which swung by 800 points during the week, not much has changed as far as the indices are concerned. A closer look at the sectoral front shows that bulls may have shed quite some weight, especially the cement sector. In the latest development, cement makers have agreed to hold prices even if input prices rises over a period of year.
We could well see lower levels being tested though upward spikes like the ones witnessed on Thursday may confuse markets even more. For day traders the volatility seems unfavorable. For investors who have a medium to long term horizon, heavyweights are available at better prices. The weekend development regarding Reliance's merger with IPCL and the ratios declared could see some action on these counters. Not that Reliance needs any particular reason to swing either way. Further correction in the coming week could see 3650 levels on the Nifty being tested. RBI on the other hand is taking steps to ensure that credit growth in speculative segments remains under control. Reports say the central bank has asked banks to furnish details of borrowers who have taken multiple housing loans.
Invest if you have the money. Trade if you have the risk appetite. Relax if you are a long term investor.