Market to remain consolidating at the current level with positive bias : Amrapali Aadya

Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya

On Monday, benchmark indices remained under the grip of Donald Trump first ever address to the US congress in regards to border tax along with Obamacare policies. Moving further in the week, very important data i.e. India's GDP data for the third quarter was scheduled. As per the consensus, GDP data was expected to disappoint the street amid disruption in the economical activity. Putting end on consensus thought of disappointing GDP growth amid demonetization, India retained its crown of being world's fastest growing major economy by showcasing strong GDP growth number of 7%. Moreover, GDP data along with Donald Trump mixed response on the tax & Obamacare send the buoyancy in the benchmark indices. Auto sales number released in the week stood disappointing, majorly got hit by demonetization. On Thursday market went under the profit taking mode wiping all the earned gains during the week. Lastly on the weekend, market again got trapped in the fear of Jenet Yellen meeting schedule later on Friday regarding interest rate hike along with further profit taking. Finally, market closes the week on the flattish note.

Coming week is to remain crucial as Jenet yellen meeting impact in the domestic market will come on Monday. So far, US fed officials are on the same page for the rate hike in the March month but we would like to sense her tone for the same. Further also, finance minister Arun Jaitley is expected to approve four crucial bills on 4th March, which could also help in giving the sentiments to market along. Another important macroeconomic data i.e. India Industrial production, schedule in the week could also give the sense. We may see sign of relief in the IIP data following the recovery in the industrial and manufacturing activity. As of now, most important factor which market is waiting for i.e. U.P. election results, though it is expected in the next week but precipitate could be seen in this week only. Apart from that, we can expect some further action in the telecom space following the Jio Pressure. We do advise traders to look into the IT, Infra and telecom sectors for the coming week, Moreover; we foresee market to remain consolidating at the current level with positive bias.

We see market is range bound in the coming week between 8800 - 9000. Outcome of UP election to provide a breakout, a win for BJP could be trigger as breakout on the higher side and vice versa. On a breakout above 9000 level market could run towards 9400.

Source : Equity Bulls

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