Friday 31 August 2007

Mkts seen consolidating next week

It was a pull-back week for the Indian equity market. The bulls took the charge and the benchmarks Sensex and Nifty gained 6.5 per cent each to end the week at 15,318 and 4,464.

“We see fresh positions building next week. The market will consolidate with a positive bias,” said Lalit Thakkar, chairman & managing director, Angel Stock Broking. However, though fears of an early election here have subsided, the US sub-prime issue refuses to lie low.

Later on Friday, global markets will take cues from US Federal Reserve Chairman Ben Bernanke’s speech on housing and monetary policy.

“His statement will not be negative to the markets. They have given a commitment to bailout the industry out of sub prime woes,” Thakkar said. He said if the Fed reduces lending rate there will be a reaction globally and domestic market may face a knee jerk reaction.

He advises traders to take trading calls but entry levels should be carefully selected. “One can pick Maruti Udyog, ICICI Bank and Reliance Energy on declines,” he added.

The charts too look bullish for the next week. “We expect the Sensex and Nifty to touch 15,500-15,600 and 4530-4550 levels, respectively. There may be some profit booking after that,” said Sandeep Waghle, technical analyst, Angel Stock Broking.

He suggests traders be cautious and wait for declines before taking positions. The stocks that look bullish on charts are Ranbaxy, ICICI Bank, Bank of India and BHEL.

“There is still some upside left in auto stocks like Maruti Udyog and Mahindra & Mahindra, despite the run-up this week,” he said.