Weekly Newsletter - June 5 2010

The coming week will see added pressure especially at start. The US markets could well be on their way down again as the government's monthly jobs report has fallen short of expectations. Indices are struggling to break out convincingly from their resistance zones. There appears no clarity for now on the direction of the market though the fear factor seems to dominate. Weigh your options and take a call on individual stocks rather than betting on the market as a whole.

This week saw the indices falling below their 200-DMA initially. A freak trade in Reliance and a crash in the overall market on Tuesday had the bulls bruised. Fortunately the remaining days saw some pull back though with the usual intra-day gyrations. Monsoon arrived in Kerala, but uncertainty persists over itsprogress, which are adding to the market’s woes. India grew faster than expected in fiscal year 2010, March quarter GDP growth came in at 8.6%. Impressive monthly auto sales numbers boosted the auto stocks. FMCG stocks attracted buying interest following positive news flow across the sector. Volatility in the markets drove investor’s attention towards defensive pharma space. Finally, the NSE Nifty was up by 1.4% and BSE Sensex was up 1.5%