Weekly Newsletter - Sep 12 2009

OIL’s well that ends well one may imagine given the spectacular response to the IPO of OIL India. The Oil& Gas index could however seem some pressure while Bankex may show some resilience. Technically, the Nifty looks poised to flirt with the 5000 mark in the coming weeks. The last mile journey may however seem to be filled with resistance.

The next big trigger would be the quarterly results. If flows remain as they are the bull run could gain further momentum. The monsoon worries are as good as over with the deficiencies already being factored in. Inflation will move out of the negative territory probably in the coming week.

The Chinese market which caused some upheaval in recent times is picking pace with the Chinese premier stating that the stimulus measures will stay for now. Given the stupendous rise in the overall market, a correction may set in sooner than later. Else, enjoy the ride.