Online BusinessD-Street to remain volatile, say analysts
Dalal Street is likely to witness high volatility and remain range bound with an upward bias as investors will tread cautiously despite the right signals from the government in terms of financial reforms, analysts say.
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"The market will continue its upward momentum driven by fundamentals and liquidity. However, volatility would be high as the US dollar is still not taking any definite direction," Unicon Financial Chief Executive Gajendra Nagpal said.
Marketmen added that with the government reaffirming its reforms agenda through PSU stake divestment, investors are optimistic that the valuations of their portfolio, which also comprises state-run firms, would increase in the coming days.
"The government is making the right noise in terms of PSU stake divestment. The market would try to move up but will consolidate in the range of 4,900-5,100," Bonanza Portfolio Assistant Vice President Avinash Gupta said.
Traders belive that at present the market is optimistic about the economy driven by growing industrial production data. The country"s industrial output rose 9.1 per cent in September 2009.
The bellwether Sensex surged 4.27 per cent to 16,848.83 points past week and the NSE"s Nifty ended at 4,998.95 points.
SMC Global Vice-President Rajesh Jain said: "There is ample liquidity in the system... At this time cautious, bullish optimism is prevailing in the market."
Till the time the momentum is up, traders should stay invested, he added.