[Attachment(s) from ekam ber included below]
After 3 consecutive down weeks, the week gone by brought some cheers for the market as the benchmark indices finished in green, thought modestly. Almost all the world equity markets ended the week with gains with emerging markets outperforming the developed peers. Sensex and Nifty gained 1.5% in the week gone by on the back of short covering by FIIs, value buying by domestic institutions and easing of European sovereign debt worries. All the sectoral indices closed in green for the week with BSE IT and Teck indices gaining the most, up 3.6% and 3.4% respectively. Cement stocks too put up a smart show while Metal and Power stocks underperformed. FIIs bought index futures worth nearly Rs. 2400 cr with the Open Interest going down by 45 lakh sahres, indicating short covering in the week gone by. In the cash segment, while the first 3 days' data show selling of 1226 cr, Thursday' s positive figure of 212 cr was heartening. Industrial output data for the month of December, which came on Friday, showed a robust growth of 16.8%, up from revised annual rise of 11.8% in November and was much above the consensus estimate of 12% rise. This is the highest reading since April 1999. A surprising 0.5% increase in the level of reserve requirement of commercial banks by China, the second time this year, spooked the world markets on Friday and contributed to the negative close. A lesser than expected Eurozone GDP growth at 0.1% as against expectation of 0.3% also weighed on the sentiment.
Global market sentiment will continue to have major impact on the overall market direction next week. World will cleanly watch developments on European sovereign debt crisis and a clearly defined plan by European Union to aid debt-laden Greece will only sooth the nerves. While a robust IIP figure is definitely a reason to cheer, markets will also discount the increased possibility of some rollback of fiscal stimulus in the Feb 26 federal budget in light of the same. FII activity will also be important. Pre budget expectation will result in stock specific movement. Monthly wholesale price index for January will be released on Monday. Technically, Nifty would encounter a strong resistance around previous top of 4950 on the downside, Wednesday's low, i.e. 4748, is the immediate support followed by the stronger one at 4670, the 200 DMA. Short sellers are advised to close their short positions if Nifty goes above 4844. Long trades can be initiated keeping the near term Resistance and Support of 4951 and 4748 respectively in mind.
Anagram Equity Weekly 13022010
CLIMBING THE WALL OF WORRIES
After 3 consecutive down weeks, the week gone by brought some cheers for the market as the benchmark indices finished in green, thought modestly. Almost all the world equity markets ended the week with gains with emerging markets outperforming the developed peers. Sensex and Nifty gained 1.5% in the week gone by on the back of short covering by FIIs, value buying by domestic institutions and easing of European sovereign debt worries. All the sectoral indices closed in green for the week with BSE IT and Teck indices gaining the most, up 3.6% and 3.4% respectively. Cement stocks too put up a smart show while Metal and Power stocks underperformed. FIIs bought index futures worth nearly Rs. 2400 cr with the Open Interest going down by 45 lakh sahres, indicating short covering in the week gone by. In the cash segment, while the first 3 days' data show selling of 1226 cr, Thursday' s positive figure of 212 cr was heartening. Industrial output data for the month of December, which came on Friday, showed a robust growth of 16.8%, up from revised annual rise of 11.8% in November and was much above the consensus estimate of 12% rise. This is the highest reading since April 1999. A surprising 0.5% increase in the level of reserve requirement of commercial banks by China, the second time this year, spooked the world markets on Friday and contributed to the negative close. A lesser than expected Eurozone GDP growth at 0.1% as against expectation of 0.3% also weighed on the sentiment.
US Markets were also pressured by weaker-than-expected reads on US consumer sentiment and business inventories, and brushed aside a higher-than-forecast figure on January US retail sales, which rose 0.5%.
Global market sentiment will continue to have major impact on the overall market direction next week. World will cleanly watch developments on European sovereign debt crisis and a clearly defined plan by European Union to aid debt-laden Greece will only sooth the nerves. While a robust IIP figure is definitely a reason to cheer, markets will also discount the increased possibility of some rollback of fiscal stimulus in the Feb 26 federal budget in light of the same. FII activity will also be important. Pre budget expectation will result in stock specific movement. Monthly wholesale price index for January will be released on Monday. Technically, Nifty would encounter a strong resistance around previous top of 4950 on the downside, Wednesday's low, i.e. 4748, is the immediate support followed by the stronger one at 4670, the 200 DMA. Short sellers are advised to close their short positions if Nifty goes above 4844. Long trades can be initiated keeping the near term Resistance and Support of 4951 and 4748 respectively in mind.
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Attachment(s) from ekam ber
1 of 1 File(s)
Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
.
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