Weekly Newsletter -Jun 6 2009

The market seems to be cruising on a vehicle without reverse gear. Sooner than later, some speed-breakers could come up which the advancing market may find tough to drive through. Given that we had the longest rally in recent years, some rest could be considered for the bulls. The IIP numbers may turn out to be better than the previous months which could give a further fillip after a brief correction if any. Inflation numbers have become a non-event for the time being. With no other major news, the market could get provoked by petty issues. Stay guarded and take some profit home. Having said that, Monday morning should at least be a good one with US markets rising on the back of a surprisingly better jobs data. From thereon, the market will be at the mercy of global cues, besides of course liquidity and risk appetite of the bulls. A lot will be reported about the forthcoming budget over the next few days. Though President's parliament address has made things amply clear about the new Government's thinking on policy front, budget will be an event to watch out for.