The markets ended the week slightly positive. The technical
indicators are in the over-bought region. We could see some profit-taking in
the next few sessions. The Nifty is expected to consolidate at these levels in
the next few days. There are no significant triggers on the horizon.
The ruling German coalition’s support to the ECB has been a
big positive for the Global Economy. Markets worldwide have rallied on the
news. Back home the markets are looking to Mr. Chidambaram to deliver on the
long promised reforms in the monsoon session of parliament.
In debt, short term funds are expected to do well as most
analysts expect a rate cut from the RBI during the later part of this calendar
year. However, inflation continues to persist and if the Govt goes on to
de-regulate diesel and LPG (to reduce the fiscal deficit) then it will only add
to the inflationary pressures.
The rupee tested 56.1 to the dollar before recovering a
little towards the end of the week. It is expected to remain in the same range
as the market consolidates.
Gold has crossed the important level of 30,000 for 10 gms in
the local market. Internationally the metal has been in a range between
1600-1625 $/oz. Global factors will continue to drive the price of gold. For
the short term the price is expected to rise marginally.
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