Weekly E-Magazine : Indian markets failed to continue positive momentum

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 : Indian markets failed to continue the positive momentum     Indian markets failed to continue the positive momentum and posted a negative return for the past week. The beginning of the week was on the positive note. However, the third trading day witnessed a sharp fall as global rating agency S&P cut its rating on Greece to junk raising fear of a default. Though both indices recovered some of the losses during the last couple of days, it was not enough for the markets to post a gain for the week. On a week-on-week basis, the BSE Sensex fell by 135 points, or     ~0.8%, to close at 17,558.71 The S&P CNX Nifty, on the other hand, closed down by 26   points, or ~0.5%, to close at 5,278 for the week Food inflation, meanwhile, moderated to 16.61% for the week ended   April 17 giving some comfort to RBI The government also succeeded in getting the finance bill passed in   Parliament during the end of the week   Week Ahead : Market behaviour may remain subdued during the coming week     The recovery in equity markets during the prior week did not sustain in the past week, despite the market looking positive at the very beginning of the week. At present, there is lack of triggers for the market in the local space. It was expected that the global events could move the market in either direction. This happened again during the previous week with the downgrade of Greece by S&P. The concern of its default and the possible impact of that in the European zone dragged the global market down significantly. This pressure was felt in the Indian markets too despite very low chance of any significant direct impact of that on Indian economy. Thus, it suggests it would be difficult for Indian markets to completely avert the impact of any such global event. Overall, volatility is likely to remain higher in the near future The Nifty is looking well supported in the range of 5160-5200   It is unlikely to be breached on a closing basis in the absence of any   significant bearish event On the higher side also the Nifty is likely to remain capped under 5400 in the short-term Overall, the market behaviour may remain subdued during the coming week Sincerely, ICICIdirect.com Did you know : You can generate your Password Online in 3 easy steps. Click here to know more.