No major trigger ahead; Global cues, foreign funds to drive market

The week gone by has only made the bearishness spread more in other asset classes as the dollar index has gone up further. Even the rise in GDP in US could not stop the fall in Dow & Nasdaq.

The US economy surprised forecasters by powering ahead at an annualised 5.7% in the fourth quarter - the fastest pace of growth that it has shown for six years.

The 30 share index, Sensex lost 501.7 points, or 2.98%, to 16,357.96 for the week ended Jan. 29, 2010. On the other hand, the broad based NSE Nifty plunged 153.95 points, or 3.06%, to 4,882.05 in the same period.

On Friday, the Dow Jones industrial average fell 0.52% to end at 10,067.33 while the Nasdaq Composite Index declined 1.45% to close at 2,147.35.

``Now as the result session is almost over so no major trigger in the short term is there. Therefore markets are likely to be guided by global cues. Foreign funds flow, a key driver of rally are reversing now as there is a large pressure seen in the exchange traded funds raised for investment in emerging economies,`` said the stock broker SMC while commenting on the market outlook.

However, in the short term money raising by government through disinvestment may cap the reversal of foreign flow. Trend of Nifty & Sensex is down now. Nifty faces resistance between 4,950-5,000 and Sensex between 16,650-17,000 levels, it added.