Market Updates: Markets Expected To Be range Bound Between 4,700 to 5,300

by khalid on 26/10/2011 · 0 comments

Though the situation in the Indian Markets has seen some improvements, its still range bound and a perfect bull market has still not come. The range for the current markets is 4,700 on the lower side and 5,300 on the upside. The markets are expected to continue to remain between this range for quiet some time. The biggest negative factor for the markets was the depreciation in rupee which wiped of huge gains. The commodity prices saw a fall which was due to the depreciation in rupee and this did not help the markets.

The government did not take much action on this front and the domestic factors were hurting the markets. The only positive witnessed in the market was that one can see an end in the rate hikes. Though the there is no rate hike expected now, one must always remember that markets don’t immediately bottom out after the interest rates peak. It will take another four to six months for the markets to bottom out after this. One must also remember that there was a lagged effort in the rate hikes which will affect the earnings front.

The markets are improving globally but the uncertainty is still there and the Euro Zone is still lagging behind. The Asian markets are not affected much and they have outperformed the other markets, the improvement in the US markets is also positive news for the markets.

Bell The Bull says: The markets expected to remain range bound for few months


Related Posts Plugin for WordPress, Blogger...

Leave a Comment

Previous post:

Next post: