|Market This Week
||Last week was a bad one for the markets as predicted and it was good that we stayed away. The BJP has had a good election outcome in Haryana and Maharashtra. Hence on Monday, the markets will give a gap up opening. There was a negative feeling in the overall system regarding the new government’s actions as far as reforms were concerned. However the diesel deregulation and the gas price hike was a very big reform announced on Saturday. It is likely to boost India’s credit rating and bring the FII’s back to Indian markets. The government’s roadmap looks clear and more reforms related to insurance, GST etc. can be expected in the months to come. These kind of positive reforms are likely to improve the FII inflows in November and December. We expect the current government to surpass all expectations and bring in a lot of reforms in the next 5 years. Equities would outperform all the investment platforms. So we all must be disciplined and focused in the coming 3-5 years. This week, the outcome of the state elections will prevent the NIFTY from falling further in the short term and we expect NIFTY to cross 7850. It will face immediate resistance at 7960. The NIFTY is likely to consolidate this week with good strength flowing in if it crosses 8000. For this week too let’s have a cautious and stock specific approach. The broad consolidation zone for the NIFTY is between 7750-8150. Any move beyond this range will trigger a massive movement. All the best!