Weekly E-Magazine : Market sentiment for the coming week to remain positive

Dear Kundapur Govardhana Kini, 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 : Indian equity markets bounced back into the positive territory     After falling in the previous week, Indian equity markets managed to bounce back into the positive territory during the last week. The beginning of the week, however, was on the negative side with both indices falling by more than 1% each, on concerns over the Goldman Sachs fraud issue. After a couple of days of sideways movement the market saw a good recovery during the last couple of days. The RBI policy came in line with expectations, as the repo and     reverse repo rates were hiked by only 25 bps. The CRR was also hiked by only 25 bps. This also remained a positive for the market On a week-on-week basis, the BSE Sensex rose by 103 points, or   ~0.6%, to close at 17,694.20. The S&P CNX Nifty, on the other hand, also closed up by 41 points, or ~0.8%, to close at 5,304.10 for the week Food inflation, meanwhile, again accelerated during the week with   the figure for the week ended April 10, 2010 coming at 17.65%. Results during the week came in line with expectations with no negative surprises   Week Ahead : Sentiment is expected to remain positive     It seemed a couple of weeks ago that the market may remain on the negative side for a while. However, that sentiment got hurt to a large extent with the benchmark Nifty closing again above a crucial level of 5300 during the previous week. The RBI rate decision was closely awaited by the market to get a   short-term direction and that remained positive. Comments by the RBI also did not point out to any major concerns Good earning performances by the Indian as well as major US   companies provided support to the markets despite some concerns again on Greece debt related problems   However, after market hours, Q4FY10 result by Reliance Industries   came lower than the expectations and that may put some pressure on the market sentiment As per the charts, the 5200 mark remains a very strong support for the Nifty and is unlikely to be breached very soon. On the upper side it is likely to face stiff resistance at around 5380. Overall, the sentiment is expected to remain positive for the coming week Sincerely, ICICIdirect.com Did you know : You can generate your Password Online in 3 easy steps. Click here to know more.