Market movement during the week has been volatile– down on Monday, up on Tuesday.
The Sensex closed the day’s trading at 19439.48, up 114.71 points from the previous day’s close of 19,324 points, and the Nifty at 5859, up 47.45 points from Monday’s close of 5811.55.
Benchmark indices gained strength on Tuesday following an upmove in European markets on the Greek deal. European finance ministers said they will give Greece 2.5 billion euros this month, and the rest later.
Since this range-bound volatility makes it difficult to find any concrete direction in this market and take a call, experts feel that it is better not initiate fresh positions till it moves out of the range. Experts feel the Nifty could touch 5900 on the upside and 5760 on the downside.
Sudarshan Sukhani s2analytics.com says , “When markets go into a trading range, then the movement inside that range is almost random. It goes up one day, comes down one day, closes lower, opens higher and creates a sense of confusion and uncertainty. This area is not tradable and the best thing we can do is to keep quiet if we have positions. We maintain them, and don’t initiate new ones.”
“In my reckoning the boundaries for the Nifty are 5900 on the upside and 5760 on the downside. Once the Nifty moves beyond these boundaries, even a 150-200 point move on either side, we will get a tradable range,” he says.
SP Tulsian of sptulsian.com says, “There is no conviction, there is no force for the market to go beyond 6000, but you cannot expect the markets to initiate fresh shorts at a level of sub-5800. I have been maintaining since the start of this series that 5950 will be the buying level. So, take the range for the time being as 5750 to 5950 for next one week or so.”
But looking at the macro picture, experts believe the country will have to change its policy stance to attract foreign funds. Mahesh Patil of Birla Sun Life Asset Management says, “India has to really stand up and live up to the commitments which they have made, especially at times when we want to attract FDI flows. I think we need to really fund this through long-term money which is FDI.”