Indian Stocks markets closed with decent gains last week. US Markets received some support from the Fed’s recent rate cut, but the effect may not last for the coming week. The signs of slowdown in US economy have become a cause of worry for investors all over the world.

BSE Sensex closed with a gain of 355 points at 16,371. NSE Nifty closed the week at 4942. Technical experts believe that the stock markets may remain range-bound for next 3 – 4 weeks. The undertone is bearish. There are some signs of buying at lower levels, but markets are not able to sustain at higher levels due to selling pressure.

Technical Analysts including Ashwani Gujral, Prakash Gaba, Ashu Madan and Rajat K Bose have suggested small investors and day traders to stay away from the markets due to volatility. They are offering investment advice for long term investment in select counters, but there may be chances to grab those stocks at lower levels as well.

Technical experts at major brokerage houses are suggested a bearish phase for Indian markets if the US stocks fall further. There are many stocks which are at good valuations compared to their profits in last quarter. However, some companies may not be able to perform well in coming quarterly results. This may result in Indian stock valuations fairly priced even at current levels.

Investors with long term investment plans should stay invested and can consider exposure in some select counters with robust growth story over next 18 - 36 months. Investors with short term outlook should consider every rise in stock markets as an opportunity to exit.

Indian markets may open strong on Monday but towards the end of the session, we may witness some correction. Dow Jones Industrial Average closed at 12,216 on Friday.