Mumbai: The markets ended weak on the back of negative cues from markets across the globe. However, the markets have outperformed its Asian peers and some of the emerging markets.
The Sensex closed at 12,236.78, down 37.49 points and the Nifty closed at 3,544, down 9 points. What can one expect from markets in the next week?
Technical analyst Deepak Mohoni of Trendwatchindia.com says that if the European and American markets pick up a little bit, certain stocks could do well on Monday.
He says, "I wouldn’t be surprised if the European and American markets pick up a little because these declines have usually been a one day cycle so far. In that case stocks like Reliance Communications, Escorts, Divi’s Labs, which had fairly good finishes today inspite of the market not so doing well, could do well on Monday."
However, he adds, "If one finds a second day of declines in the US, then our markets could be hit on Monday. It is not yet clear whether that would happen. There are still chances that there will be a bit of a bounce because that is the way this rally has been."
Shashank Khade of Kotak Securities says that there could be a re-rating in the midcap and small cap segment depending on the second quarter earnings.
He says, "My sense is that the midcap and small cap segment can actually get re-rated based on how the second quarter earnings actually shape up. Investors tend to buy into midcaps based on results and performance. I would believe that the midcaps would tend to gain further momentum, based on the second quarter earnings as they unfold."
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