Weekly E-Magazine : Uncertainty likely to continue and keep

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 : Sharp recovery on very first day of the week     Indian markets remained highly volatile during the previous week and managed to close with gains on a weekly basis due to a sharp recovery on the very first day of the week. The coordinated approach by the European Union (EU) and IMF to tackle the EU fiscal problems with a total rescue package of ~US$1 trillion helped global markets to witness a sharp rally initially during the week. However, the later half of the week saw markets tanking again on lack of clarity on the EU deal. On a week-on-week basis, the BSE Sensex rose by ~225 points, or     ~1.3%, to close at 16,994.6 The S&P CNX Nifty, on the other hand, also closed up by ~75 points,   or ~1.5%, to close at 5,093.50 for the week IIP for March grew at 13.5% YoY lower than the previous months   figure. WPI, on the other hand, moderated further to 9.59% in April However, the February figure was revised upwards to 10.06% Food inflation during the week ended May 1 rose again to 16.44%   Week Ahead : Markets across the globe become highly volatile     Markets across the globe have become highly volatile recently with huge upswings and downswings in the major global indices. The reason for this primarily remained the uncertainty about the European Union sovereign risk. Though, the huge bailout package announced by the EU and IMF to rescue the situation managed to provide some initial relief, uncertainty over the details and fine prints have still not become clear. This is encouraging investors to take out their money from equities and park that to safer option viz. US treasury and gold, which has already breached its all-time high and has been hovering around US$1250/ troy ounce. Metals remained the worst hit sector so far this month due to worries   over China measure to cool off its over heating economy   The uncertainty is likely to continue and would continue to keep the   markets volatile On the global front, US FOMC rate decision is due on the coming Wednesday Also, the comments by the Fed would be closely watched by the market For the Nifty, the support is likely to be seen in the range of 4980-   5000 while resistance seems to be around 5150 level The overall sentiment is likely to remain weak for the markets Sincerely, ICICIdirect.com Did you know : You can generate your Password Online in 3 easy steps. Click here to know more.