Weekly E-Magazine : Nifty Support zone likely to be between 4960 and 4880

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 : The pace of moderation remained slower than expectations   Equity markets in India fell for the second consecutive week and in a  more convincing manner. Both indices fell in all five trading days during the previous week. Though the markets tried to recover some losses on an intra-day basis in the middle of the week those attempts failed due to a continuation of weak global cues throughout the week as sovereign risks loom large in the European zone. .   On a week-on-week basis, the BSE Sensex fell by ~790 points, or      ~4.5%, to close at 16,769.71 The S&P CNX Nifty, on the other hand, also finished down by ~260    points, or ~5%, to close at 5,018.05 for the week Food inflation, though, further moderated to 16.04% for the week ended April 24 However, the pace of moderation remained slower than  expectations Meanwhile, in a major event the Supreme Court judgement in the RIL-RNRL case came in favour of RIL during the end of the week and remained largely a non-event for the markets   Week Ahead : Overall scenario is looking worse than what it was earlier    The sovereign risks in the European zone have started haunting the global equity markets in a significant way. Though Greece managed to get a bailout package of ~US$147 billion from the EU and IMF there are still some questions on the proper implementations of the conditions on which it was offered. Markets across the globe have also been watching the developments in some other countries viz. Spain , Portugal and Italy . Fears of these countries also getting into the same category as Greece rattled the markets as market participants went for safe heaven bets like gold and US treasury, both of which saw a good run up during the past week. .     The overall scenario is definitely looking worse than what it was      earlier Though the Indian economic fundamentals are still well placed, the actions of FIIs, who remained net sellers to the tune of about Rs 1,700 crore during the past week, remained a cause for concern and can drag the Indian markets further down if the global problems continue The Nifty breached some important levels e.g. 5150 and 5050     during the last week and now the support zone is likely to be between 4960 and 4880 Any positive news, however, may provide some opportunity of short  covering In that case, the Nifty may find a resistance at around 5100-5120  levels Broadly, the outlook for the coming week remains weak  Result Update Company Name RCP* Target Price Potential Upside Subros 47 61 30% HEG Limited 345 423 23% Oriental Bank of Commerce 348 423 22% Welspun Gujarat 226 325 22% GVK Power & Infra 45 54 20% * Recommended Price Sincerely, ICICIdirect.com Did you know : Now, you can view the latest research on your stocks with "Detailed company reports and updates" on Reserach Page .