Markets likely to remain range bound: Dilip Bang

By Dilip Bang of Nirmal Bang

The last fortnight saw a flurry of activities in the international markets. While sovereign bond yields rose significantly in Europe, indicating that the crisis in the Euro zone is far from over; the US economy showed signs of flattening and stagnation in growth.

The domestic markets were no different during the fortnight gone by.

The IIP (Index of Industrial Production) data for the month of February has been lower than expected. The IIP number stood at 4.1% as against the expected figure of 6.7%. It is much lower than January’s data of 6.8%.

The earnings season began with the release of the quarterly earnings result of IT bellwether Infosys, which were, however, weak. This could reflect poorly on the upcoming results of other IT companies.

Industry experts are keeping their fingers crossed over the corporate results, which they are expecting to be rather subdued.

On the other hand, crude oil prices saw a marginal correction in the previous fortnight, which may prove to be good for the Indian economy as many are expecting prices to come down further.

The markets are likely to remain range-bound and look good on declines. The Nifty has support at the 5,150 level and upper-side resistance at the 5,520 level.

Market participants can consider stocks like Dena Bank (LTP: Rs 96.45), Yes Bank Ltd (LTP: Rs 363.10), Tata Motors Ltd (LTP: Rs 289), Tata Motors-DVR-A-Ordy (LTP: Rs 159.65), Reliance Power Ltd (LTP: Rs 114.70), Aditya Birla Nuvo Ltd (LTP: Rs 958), Atlas Cycles (Haryana) Ltd (LTP: Rs 351.15), MRF Ltd (LTP: Rs 10,660.10), Vivimed Labs Ltd (LTP: Rs 419.70), Bajaj Finance Ltd (LTP: Rs 879.55) for investment as well as trading purposes.

The monetary policy review by the RBI will be the key event to look out for in the coming fortnight. The street is expecting the RBI to reduce CRR and slash interest rates. If this happens, then it will be a positive for the markets. If not, then a correction seems likely.

Source: Nirmal Bang's Beyond Market

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