NIFTY-3046
GOLD-13550/10GRAM
CRUDE OIL-$46/BARREL
INFLATION-6.38%

MARKET ROUND UP:  
SENSEX moved up by 630 points during the week.
The Sensex moved up by 630 points or 6.75% to 9958 in the week ended. On the other hand the broad based NSE Nifty surged by 189.5 points or 6.63% to 3047.
Mid cap stock surged 285 points or 9.2% to 3391 in the week.
BSE Sensex crossed the psychological mark of 10000, on anticipation of government announcement of second stimulus package.
Inflation index further this week moved down for eight consecutive weeks to 6.38% from 6.61%.

MAJOR SECTORAL GAINERS:

MAJOR GAINERS IN SENSEX:

HUL was the single biggest loser in the Sensex for the week ended; it lost around 2% during the week.

TREND IN INDICES:

FII INVESTMENT DURING THE WEEK:
Figure in crore

FII were net seller during the week to the tune of 56.6 crore.

KEY EVENTS OF THE WEEK:
Banks now need to invest 24% of their liabilities or deposits mainly in the government securities under the central bank`s Statutory Liquidity Ratio (SLR).
Rolta to buy US IT consultancy firm.
Panasonic Electric to shut three plants cut 800 jobs.
ONGC Videsh (OVL) is poised to acquire UK listed Imperial Energy as shareholders owning over 90% of the oil explorer have backed the bid.
Blackstone buys 25% in NSL Seeds.
Hewlett-Packard eyes Satyam stake.
Overseas carriers may get to own 25% stake.
Current account deficit widens to 12.5% in Q2.
LIC Housing slashes rates by 75 bps.
Ranbaxy Lab has missed its December 2008 deadline to launch an anti-migraine drug as the US drug regulator has yet to give approval.
Jindal Stainless (JSL), India`s largest stainless steel maker, has acquired chrome ore assets in the Middle East and Europe.
Auto sales for December up as compared to November 2008 but still lagging behind December 2007 sales.
Next fiscal likely to be tough according to Prime Minister Manmohan Singh. He is confident of 7% GDP growth this fiscal.

TECHNICAL:

20 day RSI is at 60 which is very near to the overbought zone. So on looking at the oscillator we can say that a cautious approach should be adopted.
Short term trend looks positive. As the Nifty short term moving average (20DMA) closed above medium term moving average (50DMA). Week ended 20DMA is at 2945 and 50DMA is at 2873. However still Nifty looks to be trapped in the range bound trading of 2750 and 3150.
Last week rally was on anticipation of second stimulus package and on lack of substantial selling pressure. During the last week rally the volume remained subdued.
As now quarterly numbers of the companies will start pouring the focus now will shift to the numbers given by the industry leaders. These numbers will define the further movement of the market. For time being we expect market to be range bound.
Any positive or negative break out will depend on the corporate earnings.

CONCLUSION:
Market in short run will expect to be range bound. Medium term outlook will depend on the corporate number that we will be getting for the December quarter.  For long term we are still confident that India will outperform and will be the first to come out with even greater GDP growth. Investor should start building the portfolio in this 2009. This year 2009 is the year of sowing.
We call upon the long term investor not to shy from the market or get bother about the medium term fluctuation rather buy the stock which has growth potential.

 

 

SHARETIPSINFO Team
www.sharetipsinfo.com

 

Investors should start to buy frontline stocks at every dips..

 

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