Weekly Newsletter - Oct 23 2011

After a choppy week, Indian markets could witness some more volatility and uncertainty as participants brace for the outcome of the much-hyped eurozone summit besides the RBI’s policy meeting. Both these key events will have a definite bearing on the sentiment, as will the F&O expiry and corporate earnings.

Next week will be a truncated one due to Diwali holidays. Of course, there will be the special Mahurat session on Diwali.



Whether the markets will get the much-needed spark would hinge on the outcome of the two big events mentioned above. Any hint of a pause from the RBI could fire up the markets. One must also keep an eye on the rupee, which has broken below the 50-per-dollar mark.

Earnings will also play a role in determining the short-term prospects for the markets following a few negative surprises. Trend in FII flows is another significant factor that one should keep on one’s radar.

Overall, the key indices should trade in the 4800-5200 range. Further direction could be decided on the breakout of this range.