Weekly Newsletter - Dec 19 2009

After a topsy-turvy, but extremely tepid few weeks, the market is desperately looking for some fresh and decisive clues. Chances are that the same may not be forthcoming given that there are only a few trading sessions left in the year, and there will also be a few holidays. In that case, the market will remain choppy and listless in a range and its movement will hinge on mostly global developments. Locally, the big event to keep an eye on will be a possible RBI announcement on monetary tightening since food inflation has shot through the roof. The best strategy will be to stay away from the markets for the rest of the month and start fresh next year. The immediate factors that will drive sentiment in the new year will be the latest quarterly earnings, trend in fund flows, global markets, possible twist in RBI policy and of course the budget. The new year will also herald extension in trading hours. Till then, enjoy the normal trading time and the holidays.