Equity Pulse : Growth rate of 7.75% for FY10 ; Market sentiments 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 : 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.com Did you know : You can set SMS Alerts to receive stock quotes  of your favourite stocks