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Indian equity, debt and commodity markets are closed today on account of Ganesh Chaturthi.
It was a good run for the equity markets last week with the broader market indices, Sensex and Nifty, moving up 3.5% in the highest weekly gains seen in two months. Markets witnessed a relief rally as the rupee recovered on the back of measures initiated by the newly appointed Reserve Bank of India (RBI) governor, Raghuram Rajan.
“Technically, the Nifty has given the consolidation breakout during last week and also breached its 50EMA on daily charts. Going ahead, it can find difficulty to breach 5,730 which is 200EMA on daily charts,” said Mudit Goyal, technical analyst, SMC Global.
Markets are likely to remain volatile in the week ahead as uncertainty heightens whether the US would go ahead with its military strikes on Syria. The US senate this week will debate and decide whether to authorise the attack on Syria. Investors worry a war would drive up oil prices which will revive concerns about current account deficit and its impact on the rupee.
Federal Open Market Committee’s (FOMC’s) upcoming meeting that is likely take a call on the extent of roll back of its monetary stimulus programme will also keep sentiment under check. Some are hoping that the Fed may keep the QE3 tapering to the minimum after US non-farm payrolls data on Friday was lower-than-expected.
