Nifty opened marginally positive and traded in a narrow range of 5020 to 5060 till 01.30 p.m., and with Bharti Aritel outstanding results, started moving up. The inflation shown an uptick to 7.33% as against 7.14% previous week, which along with Gujarath Ambuja Cements disappointed results for the Q4 have brought some selling and volatility in the markets. Shrugging off the negative factors, buying in index stocks, coupled with short covering in the last half an hour, lifted Nifty above 5100 firmly, finally closed at 5110.70. Similar trend on Sensex lifted it above 17100 level by the end of the session, which finally made the indices to post week on week gains for the 3rd consecutive week. VIX index stood at 27.40 at the end of the week, suggesting lower volatility, but Nifty Put - Call Ratio standing at 1.35, indicating that players have perfectly hedge against any sudden development, which might bring in the volatility back as indices make an attempt to challenge the 200DSMA now standing at Nifty (17454.44) & Sensex (5149.80) next week.
US markets were volatile and Dow Jones finally closed in positive territory, where as Nasdaq closed marginally in negative territory, on friday, pricing in the weak economic indicators, mixed corporate results poring in for the Q1. RBI Credit Policy meeting being scheduled on 29.04.2008, our markets might turn volatile, and trade cautiously. Any noises from the government on price control measures during the weak end or during market hours on monday also will have their influence on stock prices. Crude firming around $119 levels, due to supply concerns, will have its salutory effect on global economies in general, and our government initiatives to pass on the difference to indian economy will dampen the growth, and push the inflation further high. Thus, currently the Government and Regulators are caught between the "Devil and Deep Sea".
Range for the Next Week: Nifty might trade in the range of 4920 to 5320.
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