Weekly Newsletter - Jan 23 2010

Unfavourable external environment (China and US) had an adverse impact on sentiment, though the NSE Nifty did manage to rebound after falling well below 5000. The market remains vulnerable to a fresh decline, owing to both local as well as global factors. However, a further recovery from here on is not ruled out, especially if the RBI doesn't spring a nasty surprise in its quarterly policy meeting on Jan. 29. The undertone will also hinge on global markets remaining stable. Any fresh bad news from China or any other part of the world may drag the Nifty down below 5000 again. A flood of earnings announcements, including some top companies, will only add to the anxiety levels. Volatility may escalate due to the F&O expiry on January 28. Technically, the Nifty has strong support at 5000, but can drop as low as 4950. On the way up, the Nifty could encounter resistance at around 5120. So, brace for a bumpy ride. Don't take undue risks till the current uncertainty subsides and there is more clarity on direction.

Results Next Week: Adani Power, Alstom Projects, Alok Industries, Aban Offshore, Anant Raj Industries, Apollo Tyres, Aurobindo Pharma, BEL, BPCL, BoB, BoI, Britannia, Cairn India, Colgate, Cadila Healthcare, Canara Bank, Cipla, Century Textiles, Crompton Greaves, Cox & Kings, Dabur India, Dredging Corp., DLF, Educomp, EIH, Emami, EMCO, Gammon India, Gujarat Industries Power, Glenmark, GSK Consumer, Godrej Industries, GMR Infra, GTL Infra, GVK Power, HCL Tech, Hero Honda, Hindustan Unilever, Hindalco, HPCL, Hotel Leela, IOB, IVRCL Infra, IOC, IDFC, India Cements, Indian Hotels, Jagran, Jain Irrigation, Jindal Steel, Jet Airways, Jyoti Structures, KEC Intnl, KSK Energy, Karnataka Bank, Karur Vysya Bank, Lupin, LIC Housing, Max India, MTNL, M&M, Marico, Mundra Port, NHPC, NTPC, NALCO, Nagarjuna Construction, OBC, Opto Circuits, Onmobile, Pidilite, Pfizer, P&G Health, PNB, Patel Engineering, PFC, Pantaloon, Power Grid Corp., Puravankara, Reliance Infra, Siemens, Shoppers Stop, Sobha Developers, Sun Pharma, Suzlon, SBI, Sterlite, SAIL, Tanla, Tata Steel, Tata Tele, Tata Comm, Tata Motors, Trent, Titan, Thermax, Tulip Tele, Union Bank, United Phosphorus, Unitech Voltamp and Wockhardt.