Market Analysis

Technical Analysis

Nifty tested the crucial 4,700 support level last week after undergoing consolidation for the initial trading sessions. However, it ended the week on a positive note by rebounding from the 4,700 support level and closing above this crucial mark. In the coming week, Nifty is expected to continue its upward move as per the technical indicators. Its RSI has rebounded from the 30 levels and the MACD is about to give a buy signal by crossing above the signal line. Stocks to Watch: 1) Hindalco - Buy 2) United Phosphorus - Buy

Indian Equity Market

Indian benchmarks wrapped the week on a pessimistic note tracking hefty sell-off in equities worldwide on account of fiscal woes in Europe. Sensex and Nifty dropped by over 2.5% to close at 15, 915.65 and 4,757.25 respectively. For week ahead, investors might remain cautious eyeing on any further development on the global front. Market will also await the release of advance estimates of GDP growth for 2009-10.

Global Equity Markets

Global equity market fell during the week as concerns over job market and spreading European credit issues weighed on the markets. The European Central Bank and Bank of England kept interest rates at record lows as financial markets looked for guidance on growing euro-zone debt problems. Also, automotive giant Toyota Motor remained in focus amid its recent recall woes.

Debt Market

The yields on most traded 6.35% CG 2020 bond hardened during the week on concerns of excess supplies after RBI governor said that government borrowing in the next fiscal may exceed this year's record level. The 10-year benchmark bond didn't witness trading on two of five days during the previous week. Further, volumes were too low on other days due to auction of Rs 13,824.23 crore bonds from State governments and RBI.