Market this Week (From 22 November to 25 November)

Last week saw the stock market setting aside apprehensions of corrections and gaining 477 points.


Higher advance tax payments for the key benchmarkindices. to their 16 months high. The week also saw the Nifty briefly touch the 5,000 marks. The BSE sensex 477 points or 2.9 percent to 16,741, while the Nifty moved 147 points or 3 percent to 4976 during the week. BSE mid-cap and small-cap indices outperformed broader indices, closing the week with gains of 4.22 percent and 3.84 percent, respectivly. Positive global cues and buying byforeign funds also boosted sentiments. The better than expected advance tax numbers stoked bullish sentiments and observers said that it could be an indication of good numbers for the quarter ending September.


According to a panel of experts this week would be truncated with the markets closed on Monday.the indices are expected to be choppy in the derivative expiry-week. Nevertheless analysis expect the market to consolidate in the near-term after the up-move witnessed during the last few sessions. Fund managers opined that upside movements for the market this week is limited. They said that amid profit booking, markets may see consolidation. According to them Nifty is most likely to go up to 5000-5200 but will settle around 4,900-5,00.


Global cues could decide the direction of the domestic markets; The US Federal Reserve will meet during the week to aness. The early sign of growth in the US economy. Foreign buying would help drive positive sentiments further, it was robust for the previous week with FII's net purchases at Rs. 4984 carore for the first four days of the week.


The sectors, experts are bullish on include banking, Real Estate, Construction and telecom. However, on the fast moving consumer goods (FMCG), auto, commodities and IT, in particular, brokers are underweight.


"Banking stocks still have steam and can be pulled up. However, valuations of IT stocks are currently stretched and this space is not a comfortable avenue for the time being to invest in." said a broker.


Commodities prices are not hardening, said a fund manager. "We are underweight on Commodities. Money will flow out from the IT and Comoditiesspace to sectors like infrastructure, real estate." he further added. According to him in October market could see a correction and may come down to 4,750 levels.


The yield on government securities may move in a short range, after they eased last week. Dealers said yields were moving up due to pressure of high government borrowings. This pressure has subsided as government's bond inuance plans for first half are coming to an end.


The market seniment was also influenced by RBI governer's indication that reversal in monetary policymay not happen till the economic recovery is firmly established. The government borrowings would be much less in the second half compared to the first half.
This should help to hold long term bond yields in check, said a treasury head of large public sector bank.