The day ended on a negative note and it was a pretty sluggish start to the week. The Nifty ending in the red signalled negative global cues. Nifty was seen struggling throughout the day and closed on 5031 which is 50 pints lower than its previous close. The Sensex dropped by 190 points to close on 16750. There is still huge amount of nervousness doing the rounds in the Indian Markets, as the markets are unable to cope up with the global menace. Experts are saying that the movement in the markets hugely depends on the global events.
The markets can swing in both ways and that too in a big direction. The foreign investors own a substantial portion of the market cap and if the nervousness is still going to be there in the international markets too, then there will be a major sell-out and no positive buyers will be seen around for the time being. Still some positive correlation can be seen to the market movements.
The upside itself is depends on certain domestic macro concerns like inflation. The Indian markets are still looking attractive but the volatility is still here to stay. There could be more foreign buyers coming into the Indian markets as there was some positive FII buying seen in the month of September. The global cues are weak still the Indian markets have a lot of opportunities to move on the positive side. From a slightly medium term point of view the index is likely to stay within 5200 and 4700 for quite some time. Staying on the sidelines will actually pay off well.
Bell The Bull says a correction after two three positive sessions was inevitable