Dear Manas Chaudhuri,
We understand the need for the right research to make smart investment decisions. To keep you well informed, we present the market outlook for this week.
Previous week : Sharp rise due to growth rate of 7.75% for FY10
After taking a breather during the prior week, Indian markets bounced back sharply during the past week with the Nifty making a new 2009 high at 5197.90. Despite a weak start, the market reversed its direction from the very next day and rose significantly on the third trading day.
On a week-on-week basis, the BSE Sensex rose 641 points or
about 3.8% to close at 17360.61. The S&P CNX Nifty, on the other hand, surged 191 points or 3.8% to close at 5178.40 for the week
The sharp rise was on the back of positive comments during the
week by the Finance Minister, who indicated a growth rate of 7.75% for FY10
Global cues also remained positive for the markets
FIIs remained a major supporter behind the market rise with the
buying of Rs. 770 crores on Wednesday itself
Week ahead : Market sentiments to remain positive
Just when participants were expecting the markets to go further down, they bounced back sharply proving most of them wrong. This is showing the strength of the recent rally and also indicating that the downfall during the prior week was probably only a minor correction of that upward rally.
The rise in the US dollar also failed to have any negative impact on
the global equity markets so far. The coming week is going to be a very short one with only three trading sessions due to festivals and New Year celebrations. Therefore, the volume is likely to remain on the lower side across the globe
Volatility in Indian markets, however, is expected to remain higher, as
derivative expiry falls on the last trading day of the coming week
Overall, as the Nifty managed to score a new high after failing to do
so the last three times, we expect the market sentiments to remain positive in the coming week also with possibility of fresh highs for 2009
Pick of the week - Performance
Company Name
RCP*
Target Price
Remark
% Return
3i-Infotech 84.80 93.2 Target Achieved
10
Sincerely,
ICICIdirect.
Happy Trading,
United we grow!!!