Markets likely to remain range-bound: Dilip Bang
The earnings results for Q2FY11-12 are either in line or below expectations. So far, the corporate results have not been encouraging.
October 31, 2011 / 17:47 IST
By Dilip Bang of Nirmal Bang
The previous fortnight saw companies releasing their quarterly earnings results.The earnings results for Q2FY11-12 are either in line or below expectations. So far, the corporate results have not been encouraging. This may, however, lead to a further downward revision in the expected EPS for FY12.The rupee has been depreciating since a while now. Though this is a negative for most companies, the ones involved in the business of exports will surely benefit.However, expectations of the rupee depreciating further may not see further FII inflows into the country. Inflation too remains high. But it may show a declining trend from December due to a higher base kicking in. Globally, the resolution to address the issues affecting the Euro zone could give a direction to the markets.The markets are likely to remain range-bound in the coming fortnight. The Nifty has resistance at the 5,220 level due to the unencouraging quarterly results as well as the upcoming results of certain companies. Therefore, market participants should avoid keeping overnight positions.I advise investors and traders to buy on declines around the support levels of 5,000 - 5,050 on the Nifty. If this level breaks, they can further buy around the 4,800 level.The stocks that can be considered for trading and investment purposes, around the given Nifty support levels, are Arvind Mills, Hero MotoCorp, Axis Bank and Praj Industries.Sourced from Beyond Market.Click here to read the full magazine Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
