The market will be volatile with the December futures expiring on Thursday, and any development in
the US 'fiscal cliff' row will also impact markets. Besides, the initial public offerings (IPO) of CARE, PC Jeweller and
Bharti Infratel will be listed this week.
With US lawmakers deadlocked over averting the $600 billion in tax increases and spending cuts - which will come into effect in January 2013 - markets will hope for a solution. If the issue is not resolved, markets will be impacted.
The
week will witness truncated trading on account of Christmas on Tuesday.
December futures expire on December 27, and the current value of the Nifty at 5,847 is 22 points higher than the previous expiry of 5,825 points. This level means that on a net basis, there is hardly any movement and it would not put any pressure in the coming days before the expiry.
The banking sector would continue to be in focus as the issue of voting rights and grant of new licences has been addressed after the passing of the Banking Amendment Bill.
CARE would list on Wednesday, PC Jeweller on Thursday and Bharti Infratel on Friday to complete the primary market action for calendar year 2012. The first two issues are expected to do well and open with premiums to their issue price of Rs 750 and Rs 135, respectively.
Bharti Infratel had issued shares at Rs 220 and remained unsubscribed as far as high networth individuals (HNI) and retail was concerned, which was made up by QIB bidders.
This issue is expected to trade at discount post listing as vast majority of people felt the issue was expensive.
Markets are trying to break out of the rangebound movement over the last three weeks but appear to be failing.
The indices are at key levels and need to break out above the levels of 19,600 on the Sensex and 5,975 on the Nifty if the momentum is to be sustained.
On the downside, any fall below 19,100 and 5,800 points on the Sensex and the Nifty respectively could lead to some shortterm weakness. Take profit off the table and await the beginning of a new calendar year.
(The writer is an investment analyst)
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