The previous week’s trend remained mixed for the market. After a huge sell off on Monday’s trade, it witnessed range bound trade for the remaining three days. However, markets saw a sharp rebound on the last day of the week to close marginally lower on a week on week basis.
On a week-on-week basis, the BSE Sensex lost 170 points or 1.12% to close at 15,229.08. The S&P CNX Nifty ended at 4528.80, down by 51 points or 1.12%. The initial weakness during the previous week was due to worries over monsoon progress, spread of swine flu and weak Asian markets. Positive movement in Chinese stocks, higher European markets and a rebound in US index futures triggered a rally on the domestic bourses in late Friday’s trade. Inflation data remained positive for the market as it came at -1.53%.
The sentiment has been very strong in the Indian equity market. Though occasional profit bookings have taken place, those are not sustaining. Short covering at every fall has been restricting the market that is witnessing a significant downside. Volatility may rise in the coming week as derivative contracts for August 2009 series expire on Thursday, August 27, 2009. The global market trends and FII activity in the domestic market will influence the domestic trend in the absence of any major domestic trigger. Overall, the movement is expected to remain choppy and both sided, due to uncertainties over short-medium term direction.
Pick of the Week
Buy Fortis Healthcare (FORHEA) CMP: Rs. 104.80/- Target: Rs. 115.30/- Potential upside: 10%. Time frame: 6 months.