Sep 8, 2012

Market Update 8/9/2012

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.

Sep 3, 2012

Market Update 3/9/2012

The markets closed the week down more than 2% from last week. Technically we've moved from over-bought to stable. However, there is slight weakness with the market price inching near the 30 day moving average and the 50 day moving average.

The logjam in parliament has not helped investor risk appetite. GDP figures have come in at a 10 year low. With the RBI having little room to maneuver as inflation persists, the macro economic scenario looks weak. However, globally there have been talks of QE3. If announced that will turn the outlook positive for the markets.

Gold continued to rise in the domestic markets before some profit taking towards the later part of the week. Globally gold is near a 5 month high as speculators are taking long positions on QE3. It is expected to remain at current levels with a slight positive trend till any formal announcements.

The dollar closed the week at 55.52 to the Rupee. It is expected to be range bound for the near term with a slightly negative trend.