Previous week Nifty is closed approximately on same numbers of week opening (10 point loss). Therefore, it appears that neither the bulls nor the bears are inclined to take the lead in the market implying a lackadaisical nature.
SIP inflows for January have shown a decline of nearly 5%, while equity Mutual Funds have seen seven consecutive months of outflows. This continued outflows from equity funds could be because of profit booking by retail individuals at higher levels.
India being an oil importer has been witnessing an increasing import bill which has led to a stupendous increase in petrol and diesel prices. As an importer, if the upward journey for oil continues at the same rate, our trade deficits would see a huge jump and rupee may witness depreciation pressure.
The market is now constrained within the immediate support and resistance of 14,970 and 15,250 and a break on either side will dictate the trend for the upcoming week.
Since all the major events have been discounted, the week ahead could experience slow consolidation to even a short correction from the bourses.
There could be a tussle between the bulls and bears in the short term to gain strength but overall investors should keep a buy on dips strategy, if Nifty cross its current level upside.