WEEKLY MARKET OUTLOOK :- 8-8-2009

Watch NIFTY 4420 – 4380 Levels…

Overseas equity markets like US Index DOW JONES, Japanese Index NIKKEI, and
UK Index FTSE 100 witnessed considerable profit booking in the last week.
However, technically, the intermediate global market trend is likely to remain
uptrend. On the domestic front, the key benchmark indices witnessed selling
pressure in the preceding week on account of poor monsoon as well as profit taking
by investors. Foreign funds bought Rs. 1077.09 crore more shares than they sold
Rs.657.72 crores in the futures and options market, which indicates the increase in
risk appetite among the FII fraternity. Looking to the week ahead, we may see the
markets consolidating around the current levels of 4420 – 4560.

NIFTY created new
52 week high of 4731.45 and broken the key support level of 4620 suggesting
weakness may persist till 4420 levels. The intermediate trend would remain
uptrend, but if NIFTY breaks 4380 levels on daily closing basis then short sellers
would be capturing the market. However, if Nifty trades convincingly above 4560
levels, and then it is likely to test 4591-4653 levels.
Post Market Analysis
Domestic markets concluded the week in the negative terrain on account of selling
pressure across secors. unfavorable global cues and concern over monsoon led to
the bearish sentiments .