Weekly E-Magazine : Global markets likely to set the direction

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 : Volatility was higher, however, within a very tight  range   The Indian markets managed to continue their rally for the seventh consecutive week with marginal gains coming in during the previous week. The week began on a very negative note with both indices falling by more than 1% each. This was primarily in reaction to RBIs surprise rate hike by 25 bps late last Friday. On the rest of the three trading days, the indices gradually recovered all the gains. On a week-on-week basis, the BSE Sensex rose by ~67 points, or     0.4%, to close at 17644.76 The S&P CNX Nifty, on the other hand, also closed up by 19 points   or 0.4% to close at 5282 for the week Volatility was higher, however, within a very tight range Global markets also remained positive despite some worries, as   global rating agency Fitch downgraded Portugal during the previous week   Week Ahead : Difficult to judge the direction in which the market is likely to break out     During recent times, the market has been able to maintain its strength even with a range bound movement. Since the Union Budget there was no positive trigger for the market as such and the negative news whatsoever were mostly ignored to a large extent. The current situation has, however, become a bit tricky, as it is very difficult right now to judge in which direction the market is likely to see a breakout after remaining within a broad range viz. 5200- 5300 for the Nifty. Derivatives data also showed a very subdued rollover compared to the past three months average suggesting a cautious outlook ahead.   Both indices are trading close to their 2010 highs. This may attract     some profit booking also On the other hand, 5200 and 5100 are looking like good supports for   the Nifty in case of any downfall   In case the Nifty manages to close above 5300, we may see further   upsides Overall, the outlook for the  Indian markets in the coming week, again a holiday- shortened one, seems to be cautious with global markets likely to set the direction Sincerely, ICICIdirect.com Did you know : You can set SMS Alerts to receive stock quotes of your favourite stocks..