Weekly Newsletter - Dec 12 2009

After yet another choppy week and flat close, the Indian market will look forward to a brighter week. Hopefully, the market would have overcome the disappointment over the IIP data. Technically though, the bulls will be tested again with the Nifty failing to decisively cross the 5180 barrier. They would need some help from the global markets and overseas investors. If all goes well, the market might finally break out of the current range. But, we would continue to advocate some caution at higher levels. Sentiment could be affected if the monthly inflation data, to be released on Monday, turns out to be a part pooper. In the US, the big event to keep an eye for will be the Federal Reserve's policy meeting and its outcome. Among the other key US economic reports due out next week include: data on PPI, CPI, industrial production and housing starts.