NIFTY OUTLOOK FOR 20 & REVIEW

POLL OUTCOME TO INFLUENCE

Nifty                               7780  +32

Nifty opened steady and after taking Thursday’s low level, it rallied smartly and the gains were trimmed due to profit booking at higher levels. IT index fell sharply due to lower than expected results from TCS and all other indices gained and Banks were the lead gainers. Nifty appears to have support around 200 DMA.  Nifty spot is expected to encounter resistance at 7820,, 7855 and find support at 7740, 7700 for Monday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, opening would be influenced by the poll outcome of Maharashtra and Haryana and a clear majority for BJP would boost the sentiment.

SENSEX RECOVERS FROM LOWS

Logging its first rise in three sessions, the benchmark Sensex today recovered 109 points to reclaim 26,000 mark on gains in banking, capital goods and consumer durable shares on hopes that state election results would give a much-needed boost to economic reforms. Exit polls have predicted BJP would gain majority in recently-held Maharashtra and Haryana assembly polls. Brokers say this would improve Centre-State co-ordination and consolidate BJP's position in Rajya Sabha, a key factor to push major reforms. Smart rise in HDFC Bank, ICICI Bank, HDFC, L&T, SBI, M&M, Axis Bank, Hero MotoCorp, RIL, Bharti and Cipla shares mainly helped the market recover from two-month lows hit Thursday. However, IT shares suffered a jolt after country's largest software services exporter, TCS, yesterday announced below-market-expectations second quarter results. The 30-share Sensex resumed lower on mixed Asian cues and touched a low of 25,910.77. It gradually started to bounce back and logged a high of 26,248.54 on firm European trends, up by 250 points. Later, it pared some gains and finally settled at 26,108.53, a rise of 109.19 points or 0.42 percent. In previous two sessions, Sensex had shed 384.73 points. The wide-based 50-issue CNX Nifty of the NSE also gyrated in a range between 7,819.20 and 7,723.85 before concluding at 7,779.70 -- a net gain of 31.50 points or 0.41 per cent. "Markets are awaiting state elections outcome on Sunday which could make a difference to stocks," said Rajshekar Gowda, Senior Analyst, HBJ Capital. Participants also drew some comfort from RBI Governor's statement that India is seeing a pick-up in economic growth although more could be done to support that on a sustainable basis, according to Jayant Manglik, President-retail distribution, Religare Securities. On a weekly basis, the Sensex fell for the fourth straight week and lost 188.85 points.

NIFTY OUTLOOK FOR 17 & REVIEW

MID SESSION PULLBACK

Nifty                               7748  -116

 

Nifty traded steady / flat for most part of the day and encountered huge selling towards close to close with a loss of more than 100 points and well below 7800 mark. All sectoral indices barring FMCG closed in the red. However, Nifty closed around 100 DMA, another major support level.  Negative global cues are driving the market coupled with considerable selling from FIIs.  Nifty spot is expected to encounter resistance at 7790,, 7825 and find support at 7715, 7680 for Friday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market can be expected to trade in a zigzag manner with pullback in midsession.

GLOBAL GROWTH FEARS PULLED DOWN INDICES

Growing global growth worries spooked markets today with Sensex plunging 350 points to end below 26,000 mark after two months and Nifty slumping 116 points to sub 7,800 level on across-the-board selling in the last hour of trade. Sustained capital outflows amid weak Asian closing and lower European opening on the back of overnight fall on Wall Street on concerns over global economic growth scenario weighed negatively on sentiment. Besides, Indian rupee depreciated to 61.9 levels against US dollar on risk-aversion. Selling was so strong across Indian stocks that all 12 sectoral indices closed with losses of up to 4.25 per cent with consumer durables, power, metal, auto, capital goods, oil&gas and IT sectors taking the lead in the downslide. Overall, 26 out of 30 Sensex-based scrips closed in the red while ITC, Coal India, Gail and Cipla ended in the green. "Growth fears, falling inflation and disappointing US economic data has sent shares falling across Europe. Indian markets are afraid about the withdrawal of stimulus by US Fed," said Rakesh Goyal, Senior VP, Bonanza Portfolio. The 30-share BSE Sensex resumed lower but tried to recover as it logged a high of 26,462.08. However, it soon fell in last one-and-half-hour of trade and ended at 25,999.34, a fall of 349.99 points or 1.33 per cent. This is its weakest closing since 25,918.95 on August 13, 2014. Overall, more than 2,100 stocks closed down while about 750 shares ended higher on BSE, wiping out a chunk of investor wealth. 

The 50-issue CNX Nifty of the NSE also dipped by 115.80 points, or 1.47 per cent to end at 2-month low of 7,748.20. "It was a scary day for Indian markets which decisively broke the important zone of 7800 on Nifty...Now actual outcome of state polls will decide the fate of Indian markets going ahead," said Rajshekar Gowda, Senior Analyst, HBJ Capital. Fall in the global crude oil prices with European benchmark Brent North Sea crude shed USD 1.22 to close at USD 83.78 a barrel in London, would have a sentimental impact, brokers said.

QUCK ASSISTANCE OF 1000 CRORES TO AP

Prime Minister Narendra Modi visited cyclone hit areas of Andhra Pradesh by air and announced an interim assistance of Rs 1000 crore for taking up immediate relief works. Over 1.35 lakh people have taken shelter in the relief camps set up by the state government and more than six lakh people are provided with food at the camps, according to the statement. The state government today announced an ex-gratia payment of Rs five lakh each to the next of kin of those killed in the calamity and a financial assistance of Rs one lakh each to those who lost a limb or eyes. Earlier in the day, the prime minister visited Visakhapatnam and held a review meeting with state chief minister N Chandrababu Naidu and other top officials. "Full survey is yet to be conducted. For now, to deal with the difficulty of such a magnitude, I announce, on behalf of the Government of India, an interim assistance of Rs 1,000 crore," Modi told reporters in Visakhapatnam. He also announced an ex-gratia of Rs two lakh each to the next of kin of those killed in the cyclone and Rs 50,000 to the injured. "The Centre will fully stand by Andhra government in this hour of difficulty," Modi said. The prime minister said the Centre and Andhra Pradesh government worked in perfect coordination "minute-to-minute" over the past five days to tackle the challenge posed by the cyclone which has left a trail of devastation in the coastal areas. "It is important to note that a crisis of any magnitude can be overcome if the state and Centre work shoulder-to-shoulder," he said. Modi said the Meteorological Department had correctly forecast from October 6 itself the different aspects of the cyclone like its velocity, direction and time, leveraging the power of technology. "The use of technology has helped in overcoming this crisis," he said.

Naidu, who is camping in Visakhapatnam to oversee relief operations, announced that a package of essential food items and vegetables a nominal price would be provided to the affected people. However, long queues were witnessed at petrol pumps and shops selling essential food items like milk. Many residents alleged that the traders were trying to exploit the situation by selling items at exorbitant prices. Obviously unhappy over pace of restoration of communication lines, Naidu sternly told different agencies that they have to get their act right to see that network were operational again at the earliest. Meanwhile, the South Central Railways has cleared the rail route to Visakhapatnam in Vijayawada for traffic after repairing damages to the track. Responding to the plight of the cyclone-hit victims, several bigwigs of Telugu film industry, including Jana Sena Party founder Pawan Kalyan, announced contribution to the CM Relief Fund.

OIL DEMAND TO COME DOWN FURTHER

Falling oil prices could soon be matched by a slowing of supplies, the IEA warned today, lowering again its demand outlook because of weak growth of the global economy. Although the speed of slowing oil demand was a "surprise", a "staggering" increase in supplies was a bigger factor behind the fall of prices and rise of stockbuilding, the International Energy Agency said in its October report. The IEA again cut its forecasts for growth of global oil demand for the third month in a row. For this year, it expects demand to rise by 700,000 barrels per day to 92.4 million barrels per day which is 200,000 bd less than the previous forecast. This shrinking demand outlook in European and Asian members of the Organisation for Economic Cooperation and Development matched average growth of 1.0 mbd in countries outside the OECD areas, the IEA said. The IEA is the oil-policy arm of the OECD which groups 34 advanced economies. For next year, the agency cut its estimate of global demand from 93.8 mbd to 93.5 mbd. However, that represents an increase of 1.1 mbd from the level this year because demand will pick up somewhat as the global economy brightens, pulled by emerging economies, the IEA said. "While the abrupt slowdown in demand growth in the second quarter of 2014 has come as a surprise, supply growth looms larger as a factor behind the recent easing of market balances and OECD stock builds," the report said. "It jumped to a staggering 2.8 mbd in September year on year, as OPEC output swung back to growth for the first time in about two years." "Abundant" supplies, slowing demand and strength of the dollar had pushed down oil prices for the third month in a row, and the price of Brent oil for October delivery had fallen to less than USD 90 a barrel in October, the IEA noted. However, these steep price falls since June, with Brent oil price at four-year lows, "are casting doubt on the sustainability of current high growth rates," the IEA warned. The IEA said that "September may turn out to be a high-water mark for supply." This was also because growth from outside OPEC was expected to slow in the last quarter of this year, and because political risk to output in Libya and Iraq was "exceptionally high". At PVM oil market analysts in London, David Hufton commenting on the IEA report, said: "It makes no sense at all for OPEC members to try and defend price by cutting production only for non-OPEC producers to jump in and grab market share."

NIFTY OUTLOOK FOR 16 & REVIEW

EXIT POLLS OUTCOME TO INFLUENCE

Nifty                               7864  -20

Nifty opened better due to lower Inflation numbers and better than expected Reliance results, despite weak global cues, but sold off  in the opening session and traded in a zigzag manner to closed in negative  zone for the day. Nifty continues to hold above 7800 mark but  below 50 DMA. Further weakness would set in only when it closes below 7800 which could happen in case Maharashtra results disappoint.  Nifty spot is expected to encounter resistance at 7905,, 7945 and find support at 7825, 7785 for Thursday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, opening would be influenced by the outcome of  exit poll results and could generally trade better as long as it holds above 7800 mark. 

SENSEX DOWN BY 35 POINTS

The benchmark Sensex today washed out initial gains and ended nearly 35 points down at 26,349.33 on selling in realty, IT, consumer durable shares amid investors adopting caution ahead of key state elections. Fall in retail inflation and wholesale price rise, which hit a five-year low in September, as well as better than expected earnings from RIL initially boosted markets but losses in HDFC, Tata Motors, ITC, HDFC Bank, ONGC and TCS dragged the Sensex into the red. Shares of realty giant DLF today fell sharply by over 28 per cent, wiping out Rs 7,439 crore from its market valuation, after Sebi imposed a three-year ban on the company and six top executives from securities markets. The BSE Sensex resumed higher at 26,537.42 and moved up further to 26,550.79 on initial buying mainly in healthcare, consumer durables, banking and refinery counters. However, it declined afterwards to 26,212.01 before ending at 26,349.33, showing a loss of 34.74 points or 0.13 per cent. The CNX 50-share Nifty also moved down by 20.25 points, or 0.26 per cent, to end at 7,864.00. "Maharashtra and Haryana will go to the polls for their respective state legislative assemblies on Wednesday (15 October)...the best case in these state elections is for the BJP to get an outright majority, which will improve centre-state co-ordination and consolidate the BJP's position in the Rajya Sabha," said a Nomura report. Retail inflation dropped to 6.46 per cent in September on falling prices of fruits and vegetables, the lowest since India started computing Consumer Price Index (CPI) in January 2012. The September wholesale price inflation also fell to five year low of 2.38 per cent. The provisional data released by the stock exchanges, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 671.06 crore yesterday. Asian shares ended mixed despite US stocks posting their third straight decline as investors awaited earnings. Key indices in China, Hong Kong, Japan and Singapore declined by 0.24 per cent to 2.38 per cent while South Korea and Taiwan moved up by 0.11 per cent to 0.65 per cent. Both the stock exchanges, BSE and NSE will remain closed tomorrow on the account of voting for assembly polls in Maharashtra. 

FRENCHMAN TIROLE WINS ECONOMIC NOBEL

French economist Jean Tirole today won the Nobel prize for economics for research on market power and regulation that has helped policy-makers understand how to deal with industries dominated by a few dominant companies. Calling Tirole "one of the most influential economists of our time," the Royal Swedish Academy of Sciences said he's made contributions in a range of research areas. But it highlighted his role in clarifying "how to understand and regulate industries with a few powerful firms." Tirole, 61, works at the Toulouse School of Economics in France and has a Ph.D. from Massachusetts Institute of Technology. Left unregulated, industries that are dominated by a few single firms can produce undesirable results, such as unnecessarily high prices or unproductive companies blocking new competitive firms from entering the market. From the mid-1980s, Tirole "breathed new life into research on such market failures," the academy said, adding his work has strong bearing on how governments deal with mergers or cartels and how they should regulate monopolies. "In a series of articles and books, Jean Tirole has presented a general framework for designing such policies and applied it to a number of industries, ranging from telecommunications to banking," the academy said. Harvard University professor and economist Philippe Aghion said on France's BFM television today that Tirole's work is particularly useful to governments as they try to determine the best level of regulation, notably regulation of banks after the global financial crisis in 2008. "Tirole is at the frontier of this domain," Aghion said. In a 2012 interview, Tirole told the financial journal Les Echos that the 2008 financial crisis stemmed primarily from regulatory failure. "The vision according to which economists have unlimited trust in the efficiency of markets is 30 years behind the times," he said. It was the first economics prize without an American winner since 1999. "I'm so moved," Tirole said, speaking to a news conference in Stockholm on a telephone link from Toulouse. The economics prize completed the 2014 Nobel Prize announcements. The awards will be presented on December 10, the anniversary of prize founder Alfred Nobel's death in 1896. Even though the economics award is not an original Nobel Prize - it was added in 1968 by Sweden's central bank - it is presented with the others and carries the same prize money. Last year the economics prize went to three Americans who shed light on the forces that move stock, bond and home prices.

INDIA's RICE OUTPUT MAY DROP

India's rice production in the current year is expected to slip below the last year's record 106.54 million tonnes due to deficient rains, according to the US Department of Agriculture (USDA). The country's overall rice output is estimated to be 100 million tonnes in the ongoing 2014-15 marketing year (October- September), over six per cent lower than the last year, it said in its latest grain report. "Continued deficient rains and 'normal' cyclones in eastern coast during October-November could further affect the harvest of kharif rice and planting prospects for the upcoming rabi rice," the USDA report said. The USDA estimates 2014-15 rice production to include 87 million tonnes of kharif rice (versus 91.7 million tonnes last year) and 13 million tonnes of rabi rice (versus 14.9 million tonnes last year), it said. Rice is grown in two seasons -- kharif (summer) and rabi (winter). Currently, kharif rice is ready for harvest and the planting of rabi rice is underway in some places.
According to the USDA, the Indian government's first advance estimate for the kharif rice production is 88 million tonnes and recent floods in Assam and adjoining states, as well as drought like conditions in Uttar Pradesh, may further pressure the official kharif production estimate. While kharif rice planting improved due to good rains in late August and early September, overall productivity is likely to be lower than last year due to delayed planting and prolonged moisture stress during critical stages after transplanting, it said. On rabi rice, the USDA said that deficient 2014 monsoon rains in the southern states of Andhra Pradesh and Telangana, as well as the eastern states of Bihar, Jharkhand, and West Bengal are also likely to affect planting and production prospects of the rabi rice. Stating that nearly 42 per cent of the rice crop in India is unirrigated, with the rest 58 per cent under irrigation, the USDA report said: "Consequently, rice transplanting in most of the rice growing areas was delayed by 3-4 weeks as a result of the periodic and prolonged dry spells in 2014. This delay will negatively affect yield prospects in the current year from last year."

MF EQUITY FOLIO RISE

Equity mutual funds added more than 5 lakh investor accounts or folios in the first 6 months of the current fiscal in view of sharp rise in the stock market. Folios are numbers designated to individual investor accounts, though one investor can have multiple folios.

According to the Securities and Exchange Board of India data on investor accounts with 45 fund houses, the number of equity folios rose to 2,96,85,807 at the end of last month from 2,91,80,922 at the end of the last fiscal (March 31, 2014), registering a gain of 5,04,885 during the April- September period.
The additions came at a time when the market was scaling new highs.
April saw the first rise in more than four years. Prior to that, the equity MF sector had seen a continuous closure of folios since March 2009 after the market crashed due to the global financial crisis in late 2008. Since March 2009, it has seen a closure of 1.5 crore folios.
The investor base reached its peak of 4.11 crore in March 2009, while it was 3.77 crore in March 2008.
On the rise in the folios in the last six months, analysts said that robust market performance over the past few months helped investors renew faith in stock market.
The mutual funds industry reported net inflows of nearly Rs 34,000 crore in equity funds in the April-September period of the current fiscal (2014-15), which helped the industry grow its folio count.
"We have been witnessing a continuous rise in investor base into equity mutual funds since April, which is a positive development for the markets. The increase in folios is also due to huge inflows in stock market," Amrapali Aadya Trading & Investment Equity Research Analyst Ujjal Jana said.
The BSE's benchmark Sensex surged by 19 per cent in the first six-month of the current financial year.

NIFTY OUTLOOK FOR 14 & REVIEW

FORENOON BETTER

Nifty                               7884  +24

Nifty opened lower following global cues but gained significantly from lower levels to close in the green. Nifty appears to have taken support around 7800 level and would become further weak only when it  closes below 7800. Nifty spot is expected to encounter resistance at 7925,, 7960 and find support at 7845, 7805 for Tuesday. While Global cues  and  Funds flow  are expected to broadly guide the market movement, based on the present market position, market can be expected to be generally better in the forenoon and could experience profit booking in Second half of the day, particularly towards as Wednesday is a trading holiday in view of Maharashtra elections.

SENSEX REBOUNDS 87 Pts

The benchmark Sensex today recovered by nearly 87 points to end at 26,384.07 boosted by fag-end buying in metal, banking, IT shares coupled with positive European cues. The BSE Sensex resumed lower at 26,275.07 and then fell further to a two-month low of 26,092.69 on initial selling in key sectors as India's industrial production growth remained subdued in August. Worries over foreign capital outflows and sharp fall in US markets last Friday also weighed. However, the index recovered afterwards to 26,443.16 before concluding the day at 26,384.07, showing a gain of 86.69 pts or 0.33 per cent. Better-than-expected Chinese trade data and crude oil prices falling to near 4-year lows also provided some support. The Sensex had lost 339.90 points, or 1.28 per cent, last Friday on profit-booking and Eurozone growth worries. Like the Sensex, the NSE 50-share Nifty gained 24.30 points, or 0.31 per cent, to finish at 7,884.25. "Volumes continued to falter and remained lower than Friday's trading session. PSU Banks, Metal and Energy stocks remained the top performing sectors while Realty, Pharma and FMCG faced the maximum selling pressure in the day," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. Market participants are eyeing monthly Consumer Price Index (CPI) data and quaterly earnings of Reliance Industries. These are expected to set the tone for trading tomorrow. Most Asian stocks ended lower as concerns about global economic growth remained. Key benchmark indices in China, Singapore, Taiwan and South Korea fell 0.36-2.84 per cent while the barometer in Hong Kong inched up 0.24 per cent. Meanwhile, European makets witnessed a strong rebound and were trading positively with France, Germany and UK indices moving up 0.05 per cent to 0.48 per cent. Locally, Foreign Portfolio investors (FPIs) sold shares worth net Rs 719.77 crore last Friday as per the provisional data from stock exchanges.

WEEKLY ASTRO GUIDE FOR NIFTY

PULLBACK POSSIBLE...!!!

(13.10.2014 to 17.10.2014)

Planetary Position ::

During the current week Moon would be transiting  from Mrigasira in Taurus to Aslesha in Cancer.

Sun transits in Chitta   in Virgo .

Mercury , in Retrograde motion, transits  in Chitta   in  Libra and Virgo  and would be  in retro motion till 25^th October.

Venus transits in Hastha and Chitta in  Virgo.

Mars  transits in   Jyeshta constellation in Scorpio .  

Saturn transits in Visakha constellation in Libra and in  Gemini Navamsa .  

Jupiter transits in Aslesha constellation in Cancer and in  Aquarius navamsa ..

Nifty’s range between last week Tuesday and Wednesday was  the monthly astro range for the next Three weeks. Hence Monthly astro range for Nifty is 7973 and 7816. Nifty would be bullish above the high(7973) and bearish below the Low(7816) for the next Three weeks.

Venus Sun conjunction (generally referred to as Sukra Moudhyam) is generally bearish and Mercury retro motion gives scope for dual movement. Statistics / information during Mercury retro period is generally misleading and unreliable.

Nifty Outlook

 NIFTY :: 7860 (-66)

(Further Bearishness only Below 7800….)

Nifty’as Bearishness continued for the Third week and is close to strong support level of 7800. Unless Nifty closes below 7800, further bearishness need not be expected. However, Nifty would become bullish only when it crosses / closes above 7975. Q2 results season began with a bang with Infy springing a surprise with a liberal Bonus too. However, IT and Pharma indices which have been outperformers suffered a set back last week (barring Infy). Falling crude prices is a blessing for India’s macro economic fundamentals and Current Account Deficit , which is well under control, should leave enough room for reforms etc., Big reforms can be expected from the Government after the Maharashtra election results which would be out by the end of the week and next Budget should really be path breaking if the present Government  is fully committed to growth and reforms. IIP figures released after Friday market was disappointing and the recent coal blocks cancellation could have its effect even in the next couple of months also. Hence it is time for the Government to act to spur growth. Despite some bounce from lower levels, Public Sector Banks continue to be weak.  Public Sector Banks, Infra and Realty sectors are quite weak and the sentiment would not improve unless these sectors rebound. Financials are quite important as they constitute significant portion of Nifty. Value investors with a medium / long term horizon can consider well run banks with lower incidence of NPAs. It is time for this Government to do something concrete on economic front particularly issues such as Gas pricing which would impact other sectors too.

Nifty closed the week  below 50 DMA, which is placed above 7900. Unless it closes above 50dMA and continuously trades above 7900, short term bearishness would continue. On the other hand, if Nifty witnesses another Down week, further correction can be expected. Further,  Nifty needs to clearly trade above 7975 to negate the present fall / down move.  Maharasthra Election results would be the bigger trigger for this month.

If Nifty is to remain bullish for October, it needs to take support above 7800, failing which a deeper correction is possible.

Highly positive macro indicator is the falling crude oil prices and falling gold imports which would positively impact Current Account Deficit.

PSU Banks need to come out of the NPA problem which could take further time in view of the gravity of the problem. Recent Supreme Court verdict on Coal allocation has increased the woes of PSU Banks.  IT Sector is buoyant and further buoyancy too can be expected in view of strengthening US  economy. Infra and Power sector woes can be expected to be addressed by the present Government

Technically, Nifty is bullish in  most time frames and very short term trend would become positive when it closes above 8050.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7995, 7915, 7730 and 7070 respectively and would

act as supports / resistances. Nifty needs to close decisively above 50 DMA to resume short term uptrend.

Based on the present Government’s agenda, Infra  and Power sectors could come out of their problems soon . Stocks of promoters with proven record may be preferred in these sectors. Investors need to accumulate quality stocks while traders need to be ever vigilant.

Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the long term bullish trend is intact.   Nifty is quoting at a PE of about 20.50, which is about 17% above the  long term PE multiple.  Hence, further upside (  8500+ is possible during the year / before next Budget)  

in view of the  stable and performing Government  at the centre as earnings would go up because of favourable atmosphere .  IF Nifty stays around the present level for the next Six months, trailing PE could come down to less than 20 also making a case for another upmove.

Market is usually ahead of fundamentals and fundamentals need to catch up with the present valuations which could take some time .

Strong long term support would be around 7100 level and Medium term support is 7700.

Technical Levels ::

For the coming week, Nifty spot is expected to face

resistance at 7950,  8040, 8130 and find support at 7770, 7685, 7600.

Minor resistances may be found at 7910, 7945, 7970, 8005  and minor supports at 7810, 7775, 7750 and 7715.

For short term Nifty is bearish  with strong support at 7800 and would become bullish on a close above 7975

Advice for Traders ::

Nifty continues to trade in a relatively narrow range with bearish bias with strong supports at 7800, 7750 and 7700. In view of multiple supports between 7700 and 7800 and the time wise correction ( fell about 3% in last Five weeks), downside appears limited. However, the above is subject to the big event of Maharashtra Election results which is prestigious for the Modi Government’s performance in the last 4 months. Q2 results too would affect the prices of specific companies and sectors. In view of the narrow range of September, a wider range too can be expected in October.

A reasonable pullback can be expected which could turn into a reversal of bearish trend if the Big event turns out to be positive for the market.