Equity Pulse : Your e- magazine for this week

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.   The Indian markets recovered all the losses of the prior week     during last weeks trade mainly on account of sharp gains in the first two trading days   The remaining three days of the week saw very choppy trading     with no clear direction. On a week-on-week basis, the BSE Sensex gained 470 points or about 2.8% to close at 17101.54. The S&P CNX Nifty, on the other hand, added around 167 points or 3.4% to close at 5108.9 for the week Concerns on Dubai debt crisis eased after Dubai World     indicated its $26-billion loan restructuring plan would not hurt lenders. This revived global market sentiments during the earlier part of the week and helped markets across the globe to soar   Both Indian indices failed for the third time to breach their 2009     high. The most prominent attempt being the latest one during the last week. This clearly indicates a lack of confidence among participants and fresh positive triggers for the markets   Global equity markets have been moving up along with gold     and other asset classes, simultaneously, mainly due to huge liquidity. Any concern on that front can stop this rally   In India also, food price inflation continued to soar and reached     17.47%. Along with surprisingly high GDP growth and strong IIP numbers, this may prompt the RBI to take some action in the near future. All these may not go well for the market   The momentum, however, still remains strong and at every downfall, buying is likely to emerge. According to the chart patterns, the Indian markets are likely to see some weakness, at least initially during the coming week. However, one needs to look closely whether they can sustain above some important levels. For example, 5000 for the Nifty and 16650 for the Sensex. If this happens, some rebound would be possible Sincerely, ICICIdirect.com Did you know : Now you can view Research Recommendations on your Portfolio Page