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. 

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