Market moves: 30-Jun-2011

A sixth consecutive day on a trot and the Nifty closed with a gain of nearly eight tenth of a percent finishing near the level of 5650. Banks, FMCG and metals were the leaders of the rally today. The broader markets were, however, quiet in today's trade and closed with modest gains. The volumes were significantly higher today being the F&O expiry day though technically there were first signs of momentum easing off and also the very crucial level of 5700 is approaching.The market for now seems to be following the global footsteps with European stocks trading with gains of near half a percent and S&P trading at a four week high.On the commodity side Silver prices rose further at the bullion market here today on hectic buying from speculators and stockists on the back of a strong rally in global markets.

Gold, however, declined owing to profit selling amidst subdued demand from jewellery makers despite firm overseas trend.The All India Retail inflation for industrial workers in May fell to 8.72% from 9.41% in the previous month on the back of decrease in prices of wheat atta, vegetable and pan leaf.The overall inflation based on the Wholesale Price Index (WPI) was 9.06% in May, while it was 8.66% in the previous month.The inflationary pressure still presents a prominent danger though there was a positive surprise on the retail inflation front.

By
Pavan (PGP-2) for SOFIA

Market Moves : 29-Jun-2011

The Market had yet another session of gains with the Nifty notching up 55 points with a nearly 1% gain in the index.It was the fifth consecutive day it closed with gains.

The Market was well supported by the global cues on expectations of positive news from on the Greek front. Metals, FMCG and banks were the leaders of the rally today
and the sugar sector too saw broad gains. Greece's parliament approved a five-year austerity plan on today with 155 votes in favor and 138 votes against, suggesting
Prime Minister George Papandreou was on track to win backing for a second law tomorrow.Greece's government must now win approval on tomorrow for legislation
detailing specific implementation measures for the 28-billion-euro austerity package, but today's vote clears a major hurdle in its bid to win access to international funding.

Technically market faces the next hurdle at 5700 level which may act as a level that can make or break this rally. For present Bull's seem to have the upper hand.


By
Pavan (PGP-2) for SOFIA

Market Moves : 28-Jun-2011

Today was a day of consolidation for the market as the market closed with marginal gains with Nifty ending up with a gain of 0.34% and ending near the crucial level of 5500.The consumer durables, FMCG and capital goods were the best performers whereas there was pressure on oil marketing companies and realty also closed with marginal declines.

There was significant rebound in the other Asian markets with bounce with South Korean Won raising on back of the seven month high current account surplus.

There is significant optimism ahead of the Greek vote on austerity vote being reflected in pick up in the Euro and the European markets.Crude has also bounced from its lows and is up 1.7 % on positive expectations.Overall International markets seem to be rebounding this week from their oversold levels and are expected to provide support to our markets. Lets if the rally in our stock market does extend for tomorrow which is expected.

By Pavan Kumar P
Batch of 2010 - 12
Goa Institute of Management

For SOFIA

Market Moves : 27-Jun-2011

The Market closed the opening day of the week on a good note with Nifty gaining 1% which can be presumed as decent follow up for the Friday's rally and the icing on the cake was it finished above the level of 5500.The Indian Market outperformed all other major Asian markets and the rally was supported by the surge in European stocks in the closing moment. Globally commodities have tumbled to 5 month lows and the crude oil level near 90$ still seems to be supporting the market.

There was buying observed in Banking and Oil marketing companies whereas marginal declines observed in defensives like FMCG and Pharma sectors indicating a relatively bullish sentiment and fresh longs. The real test of Nifty would be whether it can cross the next very curtail gap between 5540 and 5583.The fuel price hike has been absorbed as a positive news by the market though its impact on inflation
may yet has to be taken into account. So the bullish sentiment prevailed at least for today and lets watch out for tomorrow.

By
Pavan (PGP-2) for SOFIA

Market Weekly Wrap Up (20-24 June 2011)

The Indian Market closed with spectacular gains last week with the Nifty gaining by over 150 points or 2.84% in a single session.This rally might be attributed to multiple factors like Markets expecting a fuel price hike which may ultimately help in cutting the deficit along with a drop in the crude prices dropping to near 90$ and expectations of a further drop. This rally was further fueled by fact that the
market was in an oversold region and the shorts might have been caught at lower levels. Friday evening did see the diesel and LPG price hike materialize which is a positive for Oil Marketing companies whereas the Greece debt concern still holds though there might be a relief in the short term with EU Central Bank coming out in support saying it will do whatever to contain the crisis until Greece does implement the austerity measures and cut its deficit, which seems to be a possibility with Papandrou surviving the confidence vote . It seems we still have some life left in this rally though 5500 may turn out to be a key resistance which Nifty has to cross with volumes to indicate a further upside.

Lets watch out what actually materializes this week.

Pavan K Pennada
Class of 2012
Goa Institute of Management