Weekly Newsletter - Jan 9 2011

The major drubbing could well make the bulls be short on confidence and conviction. It could take some time for them to recover from the latest jolt as one can't be sure if the correction is done for now. It would be prudent to avoid undue risk. Wait for some sanity to return to the markets. With the IIP data and monthly inflation figures on tap next week, things could get volatile.



Global markets have been holding firm with the US stock benchmarks hitting two-year highs consistently. Even the European markets have managed to advance in the absence of any further bad news from the debt-strapped peripheral eurozone. Hopefully, the Indian market will get back on its feet and draw some inspiration from its global counterparts. Still, one needs to be cautious in the aftermath of a steep decline.

Next week should also see a few companies announcing their quarterly results. IT giant Infosys is one of them. All in all, it promises to be an important and action-packed week. Hold on tight and avoid taking large directional bets for the time being.