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
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