Weekly Newsletter - Apr 16 2010

Dalal Street and Wall Street seem to be heading in different directions. While the Dow Jones, S&P 500 and Nasdaq have crossed key psychological milestones, the Sensex and Nifty are facing some resistance after touching two-year peaks. The Nifty has come close to breaching 5400 but hasn't been able to do it due to lack of follow-up buying amid concerns over valuations. Looks like investors want the Q4 earnings and other events like the RBI annual policy to get over before taking a fresh plunge. The central bank is likely to jack up policy rates only the size of the hike is not known. Since this will be the annual policy, the RBI will also have a lot to say on a range of issues. So, the commentary from the central bank will be crucial for markets next week. The official monsoon forecast will also be out next week and could have some influence on the sentiment. As always, external factors will play a role too in shaping the market's direction. Given the uncertain and volatile conditions it would not be a bad idea to stay on the sidelines for a while and wait for more clarity.

Results Next Week: Hero Honda, Sesa Goa, TCS, Axis Bank, BILT, BOC India, Great Offshore, GTL, HCL Tech, Jindal Saw, Zee Entertainment, Hindustan Zinc, Nestle, Piramal Healthcare, Polaris Software, TVS Motor, United Spirits, Zee News, ACC, Ambuja Cements, M&M Financial, UltraTech Cement, 3i Infotech, Areva T&D, Corporation Bank, MMTC, Mahindra Lifespaces, Persistent Systems, P&G, Ranbaxy, SKF India, HDFC Bank and ICICI Bank.