Weekly Forecast

This Week Market may consolidate

Last week Sensex gained 690 points or 4.27% to 16848 and Nifty gained 202 points or 4.23% to 4998 in the week ended 13-11-2009. As we told last week nifty is in bull phase and see nifty fut. returned at closed at 5003. Now nifty is having small resistance at 5026, if nifty susain above 5026 for two days then nifty will touch 5168 very fast. This week market may show high volatility so trade with strict sl. Again we say that market is in bull phase and we see upward momentum is likely to continue as sentiment in the market remains positive.

This week market may continue its up trend

Last week Sensex gained 683 points or 4.11% to 17326 and Nifty gained 196 points or 3.98% to 5141 in the week ended 17-10-2009. Since 19-5-09 we were telling if nifty close above 4620 then our target is 4990 and 5300, see now we are going towards 5300 nifty. Now market is becoming more volatile on higher side, this time retail investors dont have delivery so sale are higher level on big players are lifting the market by huge buying since last march 2009. We see nifty more then 5500 in short time.

A special one hour Muhurat trading session will be held on Saturday, 17 October 2009, between 18:15 to 19:15 IST to pay obeisance to Lakshmi the Hindu goddess of wealth and prosperity. Investors make token purchases on the Muhurat trading day to mark the beginning of the new Samvat year as per the Hindu calendar. The market remains closed on Monday, 19 October 2009 on account of Diwali.

This week market may decide its short term trend

Last week Sensex lost 491 points or -2.87% to 16642 and Nifty lost -138 points or 2.72% to 4945 in the week ended 9-10-2009. Market was rising since last 19 weeks and last week market ends lowerr. Now on this week market may consolidate at current levels or on Monday we have IIP data declaration, may this data gave short term direction to the market. Weekly base nifty should not close below 4892.

However, a disappointing Q2 show may trigger correction after a solid surge on the bourses this year triggered by massive buying by foreign funds. HDFC, HDFC Bank, Axis Bank, TCS, Bajaj Auto and UltraTech Cement will unveil Q2 results next week.

Market may Continue its bull run in this week

Last week Sensex lost 48 points or -0.29% to 16693 and Nifty lost 18 points or -0.34% to 4958 in the week ended 25-9-2009. Since last 4-5 weeks, every week market creates news highs of year 2009, last week also nifty future made new high of 5048 and closed at 4967. In last two days of market we saw some profit booking so nifty close on lower side. Technically we can say, on weekly basis, markets were closed on neutral side. Next week we see nifty may create new high, but again on Friday, 2nd oct, 2009 we have holiday on account of Gandhi Jayanti, means in this week we have only three working days. So markets may gets more volatile in this week.

Optimism about Q2 September 2009 results may keep equities firm even as traders will refrain from building large positions due to a truncated trading week. The market sentiment remains firm on more signs of a recovery in the economy and on sustained buying by foreign funds. A fund raising spree by Indian companies has aided the rally that took the Sensex to a 16-month high on 22 September 2009 but a strong pipeline of initial public offers (IPOs) may suck liquidity from the secondary market.

Meanwhile, foreign funds are aggressively buying Indian stocks. FII inflow in September 2009 totaled Rs 12,694 crore (till 23 September 2009). That was much higher than their purchases worth Rs 4028.80 crore in the whole of August 2009. FII inflow in the calendar year 2009 totaled Rs 52,891.70 crore (till 23 September 2009).

This Week Market may consolidate at current levels

Last week Sensex gained 477 points or 2.93% to 16741 and Nifty gained 147 points or 3.03% to 4976 in the week ended 18-9-2009. Last week, market crosed 5011 and closed at 4978, which is new high of year 2009. The trigger was higher advance tax payments by companies for the September 2009 quarter, which boosted investor sentiment and pushed the benchmark index to a 15-1/2 month high. As we told last week RELIANCE, SBI, ICICIBANK and L&T will lead the market. This week is the last week of F&O expiry and on Monday we have holiday for Ramzan Id, so for rollover only three days are remained. So market will be high volatile and may consolidate at current levels.

According to numbers reported by newspapers, advance tax payments improved by as much as six times for some firms compared with the previous quarter. The robust advance tax payouts indicate that the economic recovery is underway.

Foreign institutional investors (FIIs), the largest investor category in local equities, have bought Indian stocks worth Rs 45011.10 crore this year (till 16 September 2009). In 2008, FIIs took out Rs 52987.10 crore from the Indian equities.

Market may witness selective buying in sectors, which thrive on consumer demand like automobiles and consumer durables ahead of the festive season. Metal and shipping stocks may attract buyers on the back of rise in global industrial activity.

Among the major international cues, the US Federal Reserve will meet next on 22 and 23 September 2009. At the Federal Open Market Committee's meeting, the policy makers will assess the early signs of improvement now taking shape across the economy.

Market may consolidate at current levels in this week

Last week Sensex gained 682 points or 4.47% to 15922 and Nifty gained  204 points or 4.49% to 4732 in the week ended 28-8-2009. Last week, market showed heavy volatility and closed on new high of year 2009. Next two days closing will decide market's long trade.

Since last three months nifty was not crossing 4730 level, in last week of Friday finally nifty crossed 4730 level and closed above 4730 level. Last we gave buy nifty above 4582 and tgt was 4637-4730 and see nifty closed above our 2nd target.  Now keep patience for one more day to confirm 4730 level Now if nifty close above 4750 level means nifty may sustain above 4730 levels. Since last three months we are telling if nifty sustain above 4730 then next nifty targets are 4800 and 4990.

The Central Statistical Organisation's data on India's gross domestic production due on Monday, 31 August 2009 will be the key event to watch out for in the forthcoming week. Besides movements in global markets, foreign funds activity and progress of India's monsoon may continue to influence sentiment on the domestic bourses.