Weekly E-Magazine : Strong foreign fund flows to support market

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 : Nifty hits 52 week high   The Indian markets closed flat after a rally of seven consecutive weeks   during the trade in the previous week. On Monday,  Nifty hit a 52 week high  but faced profit booking during the next two days. It managed to close flat on a  week on week basis due to gradual recovery during the  trade on  Friday. On a week-on-week basis, the BSE Sensex rose by ~47.8 points, or     0.2%, to close at 17692.62 The S&P CNX Nifty, on the other hand, also closed up by 8.5 points   or 0.2% to close at 5290.50 for the week Volatility was higher, however, within a very tight range. Global     markets also remained positive Food price index rose 16.35% in the year upto March 20, 2010,   higher than an annual rise of 16.22% in the previous week, as per the  government data on Thursday The fuel price index rose 12.75%, higher than an annual rise of 12.68% in the previous week   Week Ahead : Both indices are trading close to their 2010 highs     Despite the cautious undertone, the current rally in the market has been indicating that participants are still optimistic about further improvement. At every downfall, the market has been getting buying support. Stock-specific action may rule the roost in the near term based on expectations of Q4 March 2010 results. Information Technology major Infosys starts the reporting season on April 13, 2010. Strong foreign fund flows may support the market. As per data from the stock exchanges, foreign institutional investors   (FIIs) bought stocks worth a net Rs. 14,792.31 crore in March 2010 Closer home, cement and steel stocks will be in focus as   companies from these sectors announce their March 2010 sales figures   Both indices are trading close to their 2010 highs. This may attract   some profit booking On the other hand, 5200 and 5100 levels are looking like good support for the Nifty in case of any downfall. In case Nifty manages to close above 5330, we may see further upsides Overall, the outlook for the Indian markets  in the coming week seems to be cautious with the 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..