Weekly Newsletter - July 4 2010

Well, the bulls and bears would have happily gone home at the end of a lackluster day and an eventful week, in which the Indian market emerged largely unscathed following yet another global scare. Every time the bears threatened to unsettle the bulls the key indices managed to bounce back. The same resilience of the Indian market could be put to test next week as market players will have to contend with the RBI rate hike, a mixed US jobs data and the RNRL-Reliance Power merger. Monday being a holiday in the US, world markets might struggle for direction. But, the Indian market will have plenty to play for as it gets ready for the next batch of quarterly earnings.



The sentiment should hold firm notwithstanding the global concerns and the market could head towards the previous intermediate highs. Among the domestic data points to watch out for include the IIP report and monthly inflation numbers, both of which will be released in the week starting July 12. Though a few results might start trickling next week the real action will kick off with the Infosys earnings on July 13. Overall, India Inc's report card should not hold any major shocks though there is always a chance of some disappointment. The key to watch out for this month is whether the key indices break out of the current range, which is 5200-5350.