MARKET MOVES
Market started the week on extremely positive note around 4630 levels and moved higher. During the week NIFTY retraced 50% of previous week''s losses. We saw strong rally in NIFTY on Monday after which it took breather and remained ranged between 4700-4800 for most of the week. Positive rally was seen on last trading day of the week as NIFTY gained 44.80 (0.95%) points even after inflation number hits peak of 7.41% highest since November 2004. Upsurge on Friday was aided by stronger then expected IIP data.
Finally for the second week of April, NIFTY spot gained 131 points or 2.81% to close at 4777.80 levels. Market breadth during the last trading session remained positive. On BSE, Out of 2749 stocks traded, 1637 advanced, 1050 declined while 62 remained unchanged. Volumes took a hit on NSE with total turnover of 11815.36 crores vis-à-vis previous day''s turnover of 12539.14 crores.
Market Outlook For the Week:
For sixth consecutive week NIFTY continues to trade below its 50 Week EMA currently poised at 4932 levels. As reported previously, going forward only a breakout from current trading range of 4450-5100 will give clear direction to NIFTY. Also as mentioned previously NIFTY seems to have established minor support at 4620 levels. On higher side, we see strong hurdle around levels of 4820 and then at 4950 levels.
All in all, Inflation at three-year high of 7.41% for the week ended Mar. 29, 2008, will mount further pressure on the RBI to tighten money supply in its forthcoming annual credit policy later this month. Stock specific moves will be observed as Q4 results are declared with important result of IT major Infosys ahead on first day of the next week. Investors are likely to adopt wait and watch policy till the result announcements & traders could probably remain away as volumes have dried out. Being shortest trading week with just three trading sessions investors are advised to remain cautious.
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