The week gone by saw the markets continuing to slide lower. In the process, the crucial lows of 15745/4720 were broken and the Sensex/Nifty resumed their intermediate downtrend. It was the fourth consecutive week of losses. W-o-W, while the Sensex lost 4.3%, the Nifty lost 3.99% over the same period. Reflecting the weak sentiments seen during the week, market breadth was negative in three out of the five trading sessions of the week.
Global Markets
US crude oil fell more than $2 and Brent crude lost over $1 per barrel on worries over the prospects for global economic growth as debt crises dominated headlines on both sides of the Atlantic.
The euro zone's debt crisis struck again at the heart of Europe despite a clear-cut election victory in Spain for conservatives committed to tougher austerity.
German government bond yields hit their highest in nearly a month and world stocks held near 7-week lows on Thursday, a day after a weak debt sale in Berlin fanned fears the euro zone debt crisis is starting to threaten its biggest economy.
Indian Markets
The Securities and Exchange Board (Sebi) set a minimum allotment size of Rs 5 crore ($1 million) for issuing shares in an initial public offer to "anchor" or cornerstone investors.
The Cabinet cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand.
The Cabinet cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand.
Inflation is expected to moderate if the current easing trend in weekly food and fuel prices continues. Food inflation fell sharply to single digit at 9.01% for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis.
Amid falling value of rupee, the RBI today asked corporates to park funds raised through ECBs for domestic expenditure with local banks, a move which will increase inflow of foreign currency.
Outlook of the week
With the markets again resuming their downtrend after bouncing back on Thursday and the Sensex/Nifty trading below their previous lows of 15745/4720, the underlying trend remains down. Our immediate downside targets for the Nifty are at 4640. We continue with our go slow approach on fresh longs till we see signs of sustainable strength.
Source-hdfcsecurity
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