Indian Markets likely to see range bound movement this week - ZENMoney

The market successfully rallied above the 6150-6200 range indicating more upside in the short term. However, market is expected to face stiff resistance at the all time high levels near the 6355-6415 range.

The domestic markets are likely to see a range bound movement this week tracking global and domestic cues. The political tensions between Ukraine and Russia will weigh on market sentiments this week. The market will be also tracking the data releases from US and China for cues.

Back home, the markets are expected to start the week on a cautious note after the Oct-Dec GDP growth came in lower than expected figure of 4.7%. The monthly PMI numbers at the beginning of the week can result is some volatility in the market on Monday.

Auto sector will be in limelight this week as the companies from the sector come out with their monthly sales figures.

The market will also be tracking the rupee-dollar movement for cues. The rupee has been volatile in recent days but strengthened at the end of the week on strong foreign inflows. However, concerns about emerging market currencies and lower than expected GDP data for Oct-Dec quarter is likely to pressure the rupee this week.

Crude prices are once again on a slide on a combination of demand and supply concerns. Decreasing demand outlook and rising global oil supplies from US will keep crude prices down in the near term.

FII flows have been in a positive terrain in the Indian equity market for the second consecutive week. Further strengthening of the inflows can boost market sentiment.

While 6228,6150 and 6086 are important support levels for the Nifty, 6317, 6355 and 6415 are important resistance levels for the Nifty. While 20986, 20826 and 20522 are the immediate support levels for the Sensex, 21322, 21410 and 21484 are the immediate resistance levels for the Sensex.

The market is expected to face resistance at the the all time high levels in the short term.

Source : Equity Bulls

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