Rescue Packages announced by the Government of India and Reserve Bank of India helped our market to post significant gains during the last week despite the negative IIP growth and Rejection of “Bail-out Auto Package” by the US Senate. Global cues particularly US cues were generally negative during the last week.
Week that was
Market opened positive for the week because of rate cut announcements by RBI and the stimulus package of the central government, which included some tax relief measures and incentives for exports. Inflation falling to 8.00% and contraction in IIP has given fresh hopes of some more rate cuts by RBI and more action from government to revive the economy. Sensex and Nifty gained around 8% for the week. Realty sector was the biggest gainer during the last week on the hopes of some more rate cuts and relaxation of bank norms on lending to housing sector. Banking sector was also one of the major gainers for the week. Metal stocks went up sharply because of the strong results from Tata Steel and export relief measures announced by the government. Oil and Gas sector was also up because of the speculations that the KG gas issue may be amicably settled soon.
As we expected in the previous week, Sensex closing well above 9350 points is positive news for the market. Rise in the market with strong F&O open interest is another positive factor for the market. Net FII inflows for the week has also improved the sentiments of the market. Hence we may expect that the market will be positive during the next week also. Fate of Auto Relief Package in US Congress, Federal Reserve’s decision on further rate cuts, fresh RBI/Government measures to revive our economy will impact the overall direction of the market.
Technically the Resistance levels are
Sensex - 9750-9850, 10200-300,
Nifty - 2980-3030, 3140-60
Technically support levels are
Sensex - 9350-9450, 8700-8800
Nifty - 2800-2810, 2675-2700
Traders may initiate long position at current levels and at around 9350 levels and short position around 10200 levels. Trading positions should be with strong stop loss limits.
Rupee is expected to strengthen further against the US Dollar and move between 47.50 and 49.00. Its direction will depend on the factors discussed above.
Happy Week Ahead
தொங்கும் மனிதன் - இந்த வாரம் பங்கு சந்தையில் ஒரு சிறப்பான முன்னேற்றத்தை காண முடிந்தது. பணவீக்கம் முன்னெப்போதும் இல்லாத அளவில் வீழ்ந்ததும், உற்பத்தி குறியீட்டில் ஏற்பட்ட தாழ...
6 days ago