Weekly Review and View - Last Week 2012

Weekly Review

It was quite obvious that indices on Monday this week will open in line with the global signals and were quite silent on the initial day of the week. As expected, we also witnessed substantial volatility on the day of the RBI Monetary policy. No change in monetary stance initially triggered a fall but a recovery in the second half in the PSU banking counters led to a close in the green. During the last two trading sessions, pessimism returned into the market on the back of negative news flow from US markets. A fall of more than a percent on Friday's session led indices to test '20-day EMA' and eventually close marginally above it. The Sensex and the Nifty ended the week with a nominal loss of 0.39% and 0.54%, respectively.

Future Weekly View

According to technical analysis tools such as daily momentum oscillators indicate a relatively higher probability of a short term correction in the market. The said possibility will be confirmed only if indices sustain below last week's low of 19149 / 5823. During past certain years, volatility is observed to be at low in the year end week. There is a great possibility of such a trend repeating itself, however any adverse development with 'Fiscal Cliff' may result in enhanced volatility in the market.

Weekly Pivot Level for LT:

|| R2: 1,707 || R1: 1,648 || PIVOT: 1,615 || S1: 1,557 || S2: 1,524 ||

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Fundamentals April 30, 2013

Nik's Diary The Indian markets opened in the green following strong start to SGX Nifty and major Asian indices after better-than-expected reading on US housing sales and amid speculation that central banks will continue the stimulation measures. The US markets ended on a positive note on Monday with S&P 500 closing at a record high as traders reacted positively to the latest batch of economic news. The strength on Wall Street reflected a positive reaction to a report from the National Association of Realtors showing a bigger than expected rebound in pending home sales in the month of March. The pending home sales index rose by 1.5% in March 2013 after falling by 1% in February 2013. A separate report from the Commerce Department showed that personal spending climbed 0.2% in March 2013 following a 0.7% increase in February 2013. Meanwhile in India, renewed hopes of an interest rate cut at the RBI's monetary policy meet that is scheduled on May 3 helped stocks close high...

Fundamentals April 10, 2013

Nik's Diary The Indian markets opened in the green mirroring a positive opening in SGX Nifty, which is trading higher by 0.4%. Asian markets are trading mixed with the Hang Seng, Nikkei and Seoul Composite higher by 0.4% to 0.7%, while the Strait Times and Jakarta Composite are lower by 0.2% each. The US markets, after remaining directionless in early trade, rose higher during the course of the day, yesterday. The positive performance of the markets was partly due to tame inflation reported by China, which eased concerns that the People's Bank of China might tighten its monetary policy. US markets didn’t react much to the report released by commerce department which indicated that wholesale inventories unexpectedly dipped by 0.3% in February, although wholesale sales jumped 1.7%. The European markets ended Tuesday's trading session with mixed results after trading positively in the opening trade. Meanwhile, Indian markets posted losses for the fifth consecutive tradi...

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