The markets closed the week 1.6% up from the previous week’s close. Most of the up-move was made on Friday with the market recovering almost 2% on a single day. Technically the market’s moved from a slightly over-sold position to a moderate position. The market is expected to rally in the near term.
The ECB’s plan for unlimited bond purchases has turned investor sentiment positive and global markets are expected to rally. US jobs data also came in low and analysts expect that the Federal Reserve will now have to unroll QE3 in order to revive the economy. The monsoon session of parliament ended this week. Most policy making has remained stalled as the controversy over the coal allocation scam has refused to die down.
The Rupee closed the week at 55.53 to the dollar. The Rupee is expected to gain strength in the near term.
Gold remains steady and is testing Rs 32,000/ 10 grams in the local market. It is currently seeing some slight resistance at that price. The near to medium term outlook for Gold remains positive.