Oct 13, 2012

Market Update 13/10/2012

The markets are down 1.20% from the previous week's closing. Technically there has been some consolidation in the markets. 5650 on the Nifty is an important support and should it hold then we could see some up move.

The IIP data for August is seen as positive and should improve investor sentiment. CPI data released yesterday have indicated that inflation is moderating. However, inflation as measured by the WPI, continues to be above the RBI's comfort zone.

US unemployment data has come in at a 4 year low. This could have a positive impact on the markets in the near term. The US elections will be keenly watched and will be one of the key events in the coming weeks.

Going forward, more consolidation is expected in the markets in the near term. Long term technical indicators are still positive and there is also a fundamental case for the markets to move higher in the medium term. The present lull can be viewed as a buying opportunity.

The USD closed the week @52.81 to the INR (close to support of 52.85). The dollar made a strong recovery after the unemployment data was released with investors feeling more confident about the US economy. The dollar is expected to strengthen in the near term. Support of 52.85 could be breached and we could see the INR@53.2.

Gold has seen some weakness in the international markets with investors preferring the dollar and dollar denominated assets. Prices in the local markets have remained steady with gold closing at 3128.2/ gram.


  1. 2nd Quarter Company results will keep the Indian equity market volatile for the coming 2 /3 weeks... i believe...

  2. @Vishaka
    True that. Macro-wise there is a fundamental case for Indian equities. This might take some time to play out. Watching the results closely should give us an idea of which companies to buy.