The markets after showing signs of recovery pared gains towards the end of the week. It still settled with a marginal gain, as global factors came into play. The Indian market firmed up mid-week after a subdued start, while other major global markets were closed. However, after the resumption of trading abroad, weakness was seen especially on Friday, which saw our markets pare almost the entire gain.
The Sensex after touching a low of 16,011, rallied to a high of 16,481. It slipped later and settled with a marginal gain of 39 points at 16,192. Other major global markets such as the US, Hong Kong, Japan and China were shut during the week for a day or two. In fact, China and Taiwan were shut throughout the week.
Among the index stocks — Hindalco surged over 8 per cent to Rs 150, and HDFC Bank rallied 6.5 per cent to Rs 1,700. Tata Steel, HDFC and Hindustan Unilever were the other major gainers. On the other hand, Bharti Airtel slumped 11.5 per cent to Rs 278. Reliance Infrastructure, DLF, Reliance Communications, Reliance and Sterlite were the other prominent losers this week.
Given the fact that we are headed to a week which will be dominated by the expiry of the February derivatives series and the Union Budget, predicting the direction of the market will be all the more difficult. One needs to be prepared for high volatility and keep an eye on key levels. The best strategy is to stay put till uncertainties vanish.
The Sensex is currently below its short-term moving average both on daily (20-day) and weekly (20-week) charts. The short-term moving average on the daily chart is at 16,240, while the short-term weekly moving average is at 16,784. The bias will remain down as long as the index trades below its short-term weekly moving average.
Although the Sensex has near support at 16,000, one needs to carefully watch 15,900 as a key level, for a break below 15,900 could trigger a free fall up to 15,300 at least.
The NSE Nifty moved in a range of 146 points, from a low of 4,784, the index moved up to a high of 4,930, and finally closed with a gain of 18 points at 4,845.
Next week, the Nifty is likely to face resistance around 4,900-4,918-4,935, while it may seek support around 4,813-4,772-4,755.
The daily short-term moving average of the index is at 4,854, and the short-term weekly moving average is at 5,001. The long-term (200-day) moving average on the daily chart is at 4,719, and the weekly long-term moving average at 4,200.
************************************************TECHNICAL ANALYSIS: Index Outlook: Awaiting Budget day gyrations
The week ahead promises edge-of-the-seat excitement as the Union Budget jamboree unfolds. The Railway Budget will get things chugging on Wednesday followed by the much-prognosticated Union Budget on Friday. Thursday will be livened up by ...
STOCKS: Unitech: Buy
STOCKS: OnMobile Global Services: Hold
Investors with a two-year horizon can retain the shares of Onmobile Global Services, a mobile value-added services provider, given the strong revenue growth in lucrative overseas markets that are likely to kick in over the next 12-18 months. ...
STOCKS: Madras Cements: Book Profits
Investors can consider booking profit in the stock of Madras Cements and entering it at lower levels later. The stock's fundamentals do not warrant significant upside from here over the next ...
IPOS: United Bank of India — IPO: Avoid
Investors can refrain from subscribing to the United Bank of India's public offer. Though the offer is modestly priced, the bank doesn't appear to be a preferred exposure in the banking space, where there are a large number of other ...
TECHNICAL ANALYSIS: Sizzling Stocks
Bharti Airtel gave investors the jitters last week as it turned tail following the announcement of its offer to buy the African operations of Kuwait telecommunications company, Zain. The stock lost 14 per cent in the first two sessions of ...
PUBLIC OFFER: REC — FPO: Invest
Investors can subscribe to the follow-on offer from Rural Electrification Corporation (REC), as the valuation at which the offer is made is reasonable in the light of the strong earnings visibility and growth expectations. REC, which ...
STOCKS: Gujarat State Petronet: Buy
Gujarat State Petronet Ltd (GSPL), engaged in natural gas transmission, presents a good buying proposition for investors with a medium-term perspective. At the current price of Rs 87, the stock discounts the trailing 12-month earnings by ...
MUTUAL FUNDS: HDFC Equity Fund: Invest
Investors with a long-term perspective can consider buying the units of HDFC Equity Fund. Over a decade old, the fund boasts of not just an impressive scorecard, but also of consistent out-performance over its benchmark CNX-500, one not easy ...
Investors can retain Tata Life Sciences and Technology fund considering its long-term track record. The fund invests in the technology space as well as in the pharma sector — the latter considered as a defensive exposure. The fund, over ...
INSIGHT: Macro signals flash green, investors take cue
After jumping up joyfully at every scrap of economic data put out by the government throughout last year, the stock market has greeted macro-economic news with surprising apathy in recent months. Yet, there are several positive signals ...
TECHNICAL ANALYSIS: Query corner: Bhushan Steel moving sideways
Please give me your opinion on Petronet LNG purchased at Rs 76. Should I purchase more at current level or exit? Anuj Jain, ...
TECHNICAL ANALYSIS: Stock Strategy: Consider shorting SAIL, India Bulls Real Estate
India Bulls Real Estate (Rs 154.85): The stock has been in downtrend for quite sometime now. The recent fall has further pushed it closer to its crucial support level. Though the stock has a critical resistance at Rs 182, only a close above ...
MUTUAL FUNDS: Hang Seng BeES — Chance to buy into China
Credited with being the first foreign ETF in the country, Hang Seng BeES is the latest offering from Benchmark Asset Management Company. An open-ended index scheme, the Hang Seng BeES aims to provide its investors with returns (before ...
********************************************
DLF
Weekly Outlook - Feb 20 2010
Weekly Market Outlook - Feb 20 2010
Weekly Newsletter - Feb 20 2010
Weekly Watch - Feb 20 2010
Hindalco
Tata Motors
Bajaj Electricals
Bajaj Electricals
Weekly Wrap - Feb 20 2010
Dividend Yield Stocks
Budget Preview - Feb 20 2010
India Budget 2010-11 Preview
India Budget 2010-11 Preview
India Budget Preview - Feb 19 2010
Budget Preview - Feb 18 2010
Deepak Fertilizers
Man Infraconstruction IPO subscribed 6.87 times
Src: BusinessLine, Business Standard, DP Blog etc
