Equity Pulse : Your e- magazine for this week, Nov 20, 2009

Dear Kundapur Govardhana Kini,   We understand the need for the right research to make smart  investment decisions. To keep you well informed, we bring to you the market outlook for this week.   Previous Week : Nifty above 5000 mark amid uncertainty and indecisiveness   The previous week proved to be a week of uncertainty and indecisiveness for the market, as it behaved pretty unpredictably. The week started on a strong note followed by a couple of days of choppy movement. Then there was a sharp fall before ending the week with sharp recovery again on the last day. The last dayâ?Ts recovery helped both indices to post a gain for three consecutive weeks. Global markets also moved almost in a similar fashion.   On a week-on-week basis, the BSE Sensex managed to add 173     points or just above 1% to close at 17021.85. The S&P CNX Nifty, on the other hand, closed up by 203 points or 1.1% at 5052.45 for the week   The Sensex and the Nifty in the past week closed above 17000     and 5000 mark, respectively, for the first time since October 21, 2009 Buying sentiment has been strong at every fall and continued to     provide support to the market to bounce back from lows. Global economic data remained mixed during the previous week  Week ahead : Upside momentum likely to continue   The volatility remained higher during the previous week and the market saw both sided movement indicating that participants are not very sure of the short-term direction. The momentum has been very strong as there has been significant buying support at every fall.   The US dollar, after showing some strength, failed to make any     sustainable recovery helping the equity markets to remain strong. Institutional players from abroad also continued to put in money into Indian equities with the amount reaching around US$15.3 billion so far in 2009   The government, meanwhile, also cleared that there would not     be any cap on overseas borrowing by Indian companies at this point. However, the flows would be monitored closely. This indicates that the government does not want to disturb the current liquidity position in the market, which has been a major driving force behind the recent upsurge   The upside momentum is likely to continue in the coming week     too. However, global cues would be important, as far as the sentiment is concerned. Some important economic data is also due in the coming week including US/UK Q3 GDP and Indian infrastructure output data for October   Best regards, ICICIdirect.com