subject: The week ahead (20th Sept- 24th Sep) [print this page] Weekly News Letter Weekly News Letter
For the Week Ahead 20-09-2010
To,
The Patrons & Readers
From the Team of Tradeprofit.in
1) Domestic Issues: - Markets are near the highs of 2008 & Reliance is also on the move which is supporting the markets & Nifty move. We had earlier stated that Reliance move would be crucial for the Nifty to remain in uptrend. Domestically there are no issues economically, but politically 24th can be an issue as this is the verdict date of imp case in supreme court. Patrons of Tradeprofit.in should keep an eye on this date. There could be wild moves in Nifty due to overbought conditions, So caution is advised.
2) International Issues: - Fed statement awaited on Tueday & International & money markets will closely watch this statement, because it will have impact on all types of markets. Japan intervened in the currency markets but could not get the desired results what they wanted for themselves. Yen weakened just little bit from highs. It would be interesting to watch government interventions in currency markets, & would they be able to get the results they want in their favor.
Nifty: - 5780-6000 Break Up break Down levels.
last week view:
1) Domestic Issues: - After 2008 crisis markets are near maximum highs & we had been repeatedly saying that dynamics of Indian markets changed much before & the levels of markets are proof in itself. Now the issues effecting domestic markets would be RBI policy & IIP data . IIP is already out & RBI policy is on the anvil and markets in this week will get prepared for the RBI intervention on the inflation. Ten year bond yields have already risen by nearly 0.25 % tage points so in a way bond markets are prepared for the rate hike. So it would be nice to see how the equity markets react to the rate hike. As for IIP many learned persons are already debating the IIP nos & what they should have been & what government agencies have told. This would be an interesting thing to watch how markets react to IIP data.
2) International Issues: - Internationally there was not much news except that markets bounced back on hope that their would be no double dip recession. But would it be enough to save the Dollar. Yields are rising fast of US treasuries as other federal banks are hedging their Dollar holdings & shifting to other currencies to safeguard themselves from the probable Dollar fall. US is trying hard to save themselves from double dip & Japan is trying to save themselves from the Yen appreciation it is a dichotomy between the two.
