Capstocks Equity Research
Weekly Newsletter
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For private circulation only
1
9th January 2010
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Weekly Market Perspective
WEEKLY
Market in a cautious mood
Last week Indian markets had uncertain trading days
as indices had concluded with only minute gains. Nifty
gains 43 points for the week and Sensex gains 75
points up. The BSE Mid-Cap index outperformed the
Sensex, rising 3.40% to 6,946. The BSE Small-cap
index, too, outperformed the Sensex, rising 4.07% to
8,697.64 in the week. Metal stock rose on higher metal
prices. Banking and reality stocks show some strength.
Appreciation in rupee adversely affects operating
profit margin of IT firms. In Futures market, Nifty Jan
Futures shed 2,35,800 shares as Open Interest despite
a trading volume of 1.4 Million shares indicating a
consolidation will be there in the near term. The Open
Interest build-up in puts and calls suggests that the
Nifty has strong support at 5,000-5,100 levels and
found good resistance at 5,300 levels. The Listing of
JSW energy, DB corp, Godrej Prop at a premium to
issue price is likely to improve the IPO market. The
food price index rose 18.22% in the 12 months to 26
December 2009, lower than an annual rise of 19.83%
in the previous week. Rising Crude oil prices is a
concern for Indian economy. Forth coming third
quarter results will be the key factor to dictate the
trend of
the market commencing by Infosys
Technologies on Jan 12. The individual scrips with
non-discounted successful results will be highlighted
in this week.
U.S. stocks edge higher in late rally
The Dow Jones Industrial