Weekly Market Recap:
The week began with high volatility on the back of speculation of state assembly electoral outcome of Himachal Pradesh and Gujarat. First three days from Monday to Wednesday market traded with downward biased, while late Thursday and Friday post exit poll outcome in favor BJP, Bulls appeared to took the charge and regain all the losses and droves the market into positive zone.
This week BSE Sensex gained 212.67 points and closed at 33462.97, Similarly, Nifty added 67.60 points and closed at 10333.25. Financials and consumer stocks performed quite well, while mixed kind of reaction was seen within IT, Auto and Pharma.
Current Outlook:
As expected, before the electoral outcome volatility index (VIX) tends to be on higher side, therefore VIX was up 9.27% at 14.94 off the high 17.39, whereas crude oil price remains almost flat at 57.33 down by 0.05%. As I wrote last week Nifty may face two horizontal overhead resistances at 10412 and 10500, and this week despite of favorable exit poll outcome market reached up to the level of 10373 slightly below the 10412 which needs to be crossed on Monday if actual outcome matches up with exit poll and will act as a apocalyptic for delineation of the further direction of the market. Conversely, if actual outcomes are different then a deep correction can be witnessed and declining prices can cause a ruckus until next quarter earnings season start.
Conclusion:
I think we can continue to see the volatility in the coming week as well and my expectation is market may remain in the range with upward bias for some more time before concludes any direction and I would like to wait patiently until market portend the sign of any direction. As usual never forget to keep a stop before take any position.
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Invest patiently….Be a Savvy investor..!!
Pankaj