 |  |  | | Market Outlook | | Market Snapshot | | Previous Week | | | | The Indian market resumed its upside rally in the holiday shortened last week. Out of the three trading days, the market remained choppy and range bound for two days. However, significant gain was seen on the second day which helped the market in testing a new high again. The sensex breached the 17000 mark for the first time since May,2008. The Nifty also managed to close modestly above the 5000 mark.
On a week-on-week basis, the BSE Sensex added 442 points or 2.6% to close at 17134.55. The S&P CNX Nifty on the other hand finished at 5083.40, up by 124 points or 2.5%. The market has been gaining on the positive global cues and on expectations of better earnings by companies. Strong inflows from FIIs have been one of the major supports for the market. So far, the FIIs have injected about $3.6 billion into the Indian stock market this month with the yearly figure reaching $11.9 billion. Meanwhile, the economic data came during the week with a mixed undertone, with inflation rising higher than expectations and manufacturing activities showing improvement. | | | Week Ahead | | Despite the cautious undertone, the current rally in the market has been indicating that the participants are still optimistic about further improvement. At every downfall the market has been getting buying support. Global markets also remained supportive, however, certain economic data in the US during the last week indicated that the economic condition that everybody has been talking about, is still not out of the woods. On the domestic front too, the rising inflation is going to be a cause of concern going forward and the RBI would have to step in to bring things under control. This does not look positive for the market. Also, most of the positive things have been factored in and the market would require fresh and new triggers to go up significantly from here, which are not seen right now. Thus, at these levels one needs to remain cautious and look for the right trading opportunity rather than going for investment. | | | |  | | To unsubscribe, please click here. | Disclaimer | | |
