On the stunning rally this week: This has been an absolutely stunning performance this week. At the start of the week, if you have told people that the Nifty would be closing at around 4400 by the end of the week, I think most people would have laughed it off. But a lot of the negatives of last week have actually got unwound this week, because last week was a bad week for the market. It sold off. There was a budget disappointment, there was monsoon, and there were global markets which were also tanking.
But this week, we had good results in the US and good economic data has e lifted the S&P which lead the rally globally. You had a rewind of the budget related disappointments. Last week, there was so much talk about what would not come through, but this week New Delhi has been quite active. There is a lot of talk of disinvestment, talk about how government borrowing should not put pressure on the bond market. Bond deals have retraced from their 7% high on the day of the budget. On many accounts, many of the negatives have unwound from the budget, from global markets and from the monsoons. With rains picking up over the last couple of days, that has just got priced in the last few days of trading.
The momentum has been surprising because form the sub-4,000 level all the way to 4,400 in just about a week’s time it has been as sharp a pullback as the pull down was post the budget. Yes, it has been a stunning comeback for the market no question about that. In the last couple of days, you even been sniffing momentum the way volumes have picked up.
What Next Week ?
Nifty looks overbought now . Next week market looks more in consolidation phase there would be some short of 100-150 points correction before move ahead,and that would be good for market.
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