This week in market may rise with stock specific movement
Last week Sensex gained +234 points or +1.29% to 18401 and Nifty gained +78 points or +1.44% to 5530 in the week ended 20-8-2010. Last week we saw bulls entered in the market and took the full charge and nifty crossed 5500 level and nifty closed at 5523 level. This week we see continue upside rally with stock specific movements. Reliance may support the market. Nifty may touch upto 5580 and more. Watch attached chart below, Its weekly nifty chart their you can see prices are risisng but volumes are getting down. This is the risky point. So keep strict sl in your every trade is advisable.
| INDEX | LAST WEEK 20-08-2010 | PREVIOUS WEEK 13-08-2010 | PERCENTAGE % (+/-) | POINTS (+/-) |
|---|---|---|---|---|
| SENSEX | 18401.82 | 18167.03 | +1.29% | +234 |
| NIFTY | 5530.65 | 5452.10 | +1.44% | +78 |
The market hovers near 2-1/2-year high on the back of sustained buying by foreign funds. Foreign funds have made heavy purchases of Indian stocks over the past 2-1/2 months. Foreign funds have bought equities worth a net Rs 7028.83 crore so far this month, till 20 August 2010, absorbing selling of Rs 3149.57 crore from domestic funds, as per data from the stock exchanges. Foreign funds had bought shares worth a net Rs 8320.50 crore in July 2010, absorbing selling by domestic institutional investors. Domestic funds sold shares worth a net Rs 6323.13 crore in July 2010. Foreign funds had pumped in Rs 7713.97 crore in equities in June 2010, absorbing selling by domestic funds in that month. Domestic funds had dumped shares worth a net Rs 4777.05 crore in June 2010.
Data on infrastructure sector output for the month of July 2010 will be released by the government next week. Infrastructure sector production accounts for 26% of industrial output.
Investors will closely watch global economic data after a recent batch of disappointing US data reignited fears about the pace of the global econonic recovery.
Closer home, investors will closely watch the progress of the monsoon rains. The weather office late last week said rainfall was likely to remain below normal for another week, but could revive soon, particularly in the soybean-growing central region. Rainfall over the country as a whole for the second half (August to September) of the 2010 southwest monsoon season is likely to be normal, according to the India Meteorological Department (IMD). Quantitatively, rainfall for the country as a whole during the period August-September 2010 is likely to be 107% of long period average (LPA) with a model error of plus/minus 7%, according to the weather office.
The south west monsoon is important for India as about 60% of the country's farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. The weather office expects this year's monsoon rains to be at 102% of the long-period average. If the southwest monsoon for the June-September monsoon season turns out good and if it is well distributed, it will help raise farm output, boost rural incomes and lower food inflation. (Data Source: Capitalmarket)
NIFTY WEEKLY CHART
WEEKLY NIFTY SUPPORT 5470 AND RESISTANCE 5539
NIFTY FUT. (5523)
Buy above 5540 Target ????
Sell below 5469 Target ????
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Rupesh Yatesh Dalal
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