Weekly Newsletter - March 21 2010

Bulls had a fairly good week, and would want to retain the upper hand next week as well. It will be a truncated week due to a public holiday on March 24. F&O expiry could make things interesting and trading may turn a bit volatile. Broadly speaking the bias is likely to remain positive, and the key indices could surpass their previous 52-week highs. But, traded volume and market breadth should improve if the market has to sustain the current advance. FII inflows would continue to be healthy, especially after S&P's decision to raise India's outlook. Local funds however appear to be a bit cautious ahead of an imminent hike in interest rates and Q4 earnings. The ongoing benign scenario in the local market could face challenges in the event of any untoward event in the overseas markets. A big event to watch is Greece's summit with the EU authorities for securing funds to drive down debt. Any nasty surprise here could spook the sentiment.