What to expect from Markets Next week.

Yesterday our markets were very volatile as expected.The World markets barring Japan and Hong Kong markets ended negative.(Japanese markets were closed on Thursday and Hang Seng closed down by 2.5% on Thursday when all the other markets rallied after the referendum in Greece was scrapped).

In Greece, Prime Minister George Papandreou won the vote of confidence.That is a good news as the immediate uncertainty of early elections is averted which would have caused a turmoil again in the Euro zone.

A report by the UN atomic watch dog which is expected to be released next week is keenly watched by US and Israel.If the report endorses the fact that Iran is building Nuclear warheads, this time an attack over the facilities may be carried out by the US and Israel on Iran.The news about the attack on Iran's nuclear facility is not a new one.There had been rumors every now and then about the same for several years.French President at the G20 summit said,If Israel's existence is threatened, then France would not stay idle and watch.If Iran is attacked, it would close the Strait of Hormuz.Almost 40% of the world's crude oil trades happen through this strait.This would lead to a spike in Crude oil prices and it would cause huge inflationary pressure for our country.The two digit inflation figures and the higher interest scenario is a dampener for our growing economy.Expect a huge volatility in the interest sensitive sectors and the oil marketing and the oil exploration companies.

Alex sir's View on Markets.

Nifty has got a good support at 5200 levels and it is going to be a herculean task to move above 5385/5400 in the near future.A move above 5400 may result in a break up rally and a move below 5167 will trigger huge selling pressure and we may test lower support levels.
Stay cautious about the rate sensitive sectors and start accumulating the mid-cap stocks(at lower levels) which had shown excellent growth quarter on quarter.