Mkts to continue northward trend

Written by Markets Bureau | Mumbai | Updated: May 5 2009, 04:41am hrs
Indian equity indices which are witnessing an upward rally since past few weeks, on the back of sustained buying from the foreign institutional investors (FII) as well as domestic institutional investors (DII) coupled with strong cues from the global markets, domestic markets might continue their northbound journey in the coming weeks too.

However, certain technical analysts also warn of the bull fatigue turning on after seven weeks of strong momentum. And, profit taking could set in if weak buying from overseas investors is noticed.

But the current leading indicate, the US markets have been closing on the positive terrain. On the Friday too the same trend was witnessed. So thinking that Dalal Street is likely to open with positive gap on Monday, after a four-day long weekend, is also not misplaced.

Markets remained closed on from 30 April on accounting of parliamentary elections in Mumbai, while on Friday (May 1), on account of Maharashtra/Labour Day, most of the broking community had taken off on a short vacation.

On Wednesday, last trading day of previous week, despite the expiry of Future & Option expiry of April series, the 30-share Sensex of Bombay Stock Exchange (BSE) added 401.50 points or 3.65% to close the day at 11,403.25 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) closed the day at 3,473.95 points gaining 111.60 points or 3.32%.

However, with earning season going on and results of some of the heavyweight companies might have some impact on the markets. Dealers in the markets also added that, with less fear of swine flu, global markets might again witness a positive rally in the coming days. Last week, global markets had been negatively impacted on fear that, the outbreak of swine flu will disrupt a global economic recovery.

An analyst from the leading broking house said, In the short-term there are chances that, markets might remain volatile. But we can surely witness a short-upward rally, as in the coming two weeks, results of the general elections will come-out, which will have a impact on the markets. However currently, with FIIs continuously buying, there are chances that, markets might remain in green for some time now.