Weekly Newsletter - June 24 2011

Fantastic Friday saved Indian markets the blushes after starting the week on a sour note. Stocks tumbled on Monday amid speculation that India and Mauritius were considering altering a current tax treaty that could spell trouble for FIIs. However, clarification from the North Block helped sooth some of the frayed nerves.

The market was pretty lackluster after that due to a disappointing monsoon forecast. But stocks rallied on the last two days, sending the Sensex and the Nifty up ~2% on the week.

World equities recovered on Friday on hope that Greece could soon be out of the current fiscal mess. A steep drop in crude oil on Thursday came in handy as well.



Next week could be a bit more volatile owing to the F&O expiry. FII figure (prov.) for Friday is pretty upbeat. Much will hinge on whether FIIs persist with their buying. Markets will also analyse the latest auto and cement sales besides data on trade and manufacturing PMI.

The indices may remain sideways and rangebound ahead of Q1 earnings. Technically too, the upside appears capped around 5600 while 5400 could be a key support level.