Finally, participants witnessed some respite from the prevailing corrective phase as the equity benchmark index, Nifty, gained nearly three percent in a holiday shortened week. Adding to the positivity, almost all the sectoral indices participated in the recovery with noticeable buying in the cash segment. Importantly, the rebound occurred from crucial support zone of 8,300 in Nifty, which reaffirms buying interest among the investors around that zone, said Religare Securities.
Commenting on the outlook, Jayant Manglik, President-retail distribution, Religare Securities said, 'After long weekend, we have two majors events lined up in the coming week. First, we have RBI first bi-monthly monetary policy for 2015-16 on Tuesday, April 7, 2015. And next, the government will unveil industrial production data(IIP) for February 2015 on Friday, April 10, 2015.
Considering the above events and overall market scenario, volatility will remain high especially in rate sensitive sectors like banking, auto, realty etc. Broadly, we believe that Nifty would undergo in consolidation phase within 8,400-8,700 in the coming week. So, traders should uphold stock specific trading approach and prefer counters from private banking, auto, infra and pharma space for fresh buying. On the other hand, further rebound in PSU banking, energy, metal and realty space may attract selling pressure so plan your positions accordingly.'
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