- Posted September 22, 2013 by
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NEW DELHI: The S&P BSE Sensex closed the week on a high note as rupee strengthen against the US Dollar, foreign institutional investors turning net buyers in Indian equities and positive macro-economic data further boosted bullish sentiment in markets.
Easing global tension on Syria also helped bulls to regain their lost ground. US President Barack Obama agreed with global leaders for a political solution on Syria.
The Sensex shut shop gaining 2.40 per cent while the Nifty rose 3.11 per cent for the week ended September 13, 2013.
However, for the coming week analysts predict that things are likely to remain volatile as markets await Federal Reserve's policy meeting and the outcome of Reserve Bank of India's mid-quarter review of monetary policy 2013-14 which is likely to dictate trend on the bourses.
The government will unveil data of inflation based on the wholesale price index (WPI) for August 2013 on Monday, September 16, 2013. The inflation number is likely to inch higher to 5.9 per cent YoY as compared to 5.79 per cent in the month of July, as compared to ET Now Poll.
Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled next week, considered by many to provide an indication on the timing and size of the Fed's cutbacks in its bond-purchase program.
The FOMC holds a two-day policy meeting on Tuesday September 17 and Wednesday September 18 2013 to decide on interest rates in the United States.
The Reserve Bank of India will release a Mid-Quarter Review of Monetary Policy 2013-14 at 11:00 IST on Friday, September 20, 2013.
"The FOMC & RBI policy announcement will keep markets on the defensive for the coming week. Markets are likely to remain range bound as market participants will scale down positions and wait for these key events to pass," said Tarun Dang, Managing Partner at Trend-Wise.
"However, the important one is the RBI policy announcement as markets are extremely keen to know if Raghuram Rajan adopts a hawkish stance towards rates or not," he added.
Dang is of the view that a large part of the on-going rally is already out of the way as Nifty has completed targets that we had mentioned in the previous week. Going into the event heavy next week there was some long unwinding visible on Friday. Near term support on the index lies around 5650-5700, he added.
Technically speaking, the market is now comfortably above the 200-day exponential moving average. Also, the movement in the latter half of the week suggests consolidation in the range of 5820 to 5940.