| Week Ahead: Mkts to correct after new highs |
| MACRO TECHNICALS |
| Devangshu Datta / New Delhi October 30, 2006 |
| There is a good chance that the rally will be followed by a strong intermediate correction. |
| A truncated week ended strongly with a rally on Friday after a smooth settlement on Thursday. The Nifty closed at 3739.35 points for a gain of 1.7 per cent while the Sensex was up 1.55 per cent at 12906. |
| The Defty gained 2 per cent as the rupee continued to strengthen. FIIs remained strong net buyers, while mutual funds were marginally negative for October. |
| Breadth signals were reasonable. Advances outnumbered declines and the BSE500 outperformed the narrower Nifty and Sensex. Bank shares did particularly well with the Bank Nifty shooting up 3.9 per cent. |
| Outlook: There |
