| Week Ahead in Mkts: Volatility with an upside |
| MACRO TECHNICALS |
| Devangshu Datta / New Delhi September 24, 2007 |
| Strong support will help Nifty touch 4950. A breakout to new highs was followed by further gains. The Sensex closed at 16564 for a week-on-week rise of 6.16 per cent with most of the gains coming in one massive session after the US Federal Reserve cut rates. The Nifty closed at 4837.55 for a commensurate gain of 7.07 per cent. The Defty shot up a disproportionate 8.75 per cent driven by a rupee that strengthened to below 40 driven by enthusiastic FII buying and the change in rupee-USD interest differentials. Domestic mutual funds were also positive and when both these institutional groups are in buy mode, we usually see high volumes and positive breadth. Last week was no exception. The broad BSE 50 went up 6.14 per cent while the Junior rose 4.96 per cent. The only weak sector was export-driven stocks, fears of a strong rupee led to the CNXIT falling 0.8 per cent Outlook: The market is likely to see at least one bout of profit-making in the coming week and volatility will be high. Nevertheless, the breakout has been classically bullish |
