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| Dear VIKAS THAKUR, |
| We understand the need for the right research to make smart investment decisions. To keep you well informed, we present the market outlook for this week. |
|
| | Previous Week : Indian equity markets resumed their downfall | | |
| | Indian equity markets resumed their downfall during the previous week on bearish global scenario. The market started the week on a very weak note and fell sharply before recovering most of the losses. After a days choppy trade, both the indices continued their downfall on the two out of remaining three trading days. Some recovery from the lower levels helped the market close off the lows for the week. |
 | On a week-on-week basis, the BSE Sensex fell by ~549 points, or |
| | | ~3.2%, to close at 16,445.61. The S&P CNX Nifty, on the other hand, also slipped by ~162 points, or ~3.2%, to close at 4,931.15 for the week |
| 
| Global markets remained highly volatile with US dollar gaining |
| | | continuously against euro before some profit booking towards the end of the week |
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| FIIs also remained a net seller in this month with a sale of Rs. 6,323 |
| | | crore till May 18. This pressurised INR to depreciate to Rs. 47.33 before witnessing some gains |
| | |
| | Week Ahead : The market undertone is likely to remain weak. | | | |
| | Volatility continues to remain high due to uncertainty over the fiscal problems in euro zone. Though, markets across the globe have been falling, however, any positive news also has been supporting the buyers to get into the markets at the lower levels. |
|
| Historically, May has been the month of higher volatility and |
| | weakness for the market. This time the reason has been the fiscal health of the global economy |
| |
| Despite the efforts by the euro zone leaders and IMF, the uncertainty |
| | still prevails and lack of clarity on the deal has been prompting investors to get out from the riskier assets. Gold meanwhile due to its safe haven property gained significantly |
|
| During the previous week, poor jobless claims and leading indicator |
| data in US also added to the bearish undertone. Though, some short covering is expected in the market as most of the indices have been hovering near their short term trough, however, overall weakness is likely to remain for a while, unless there is some transparency on the euro zone problem |
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| US GDP data during the coming week is also likely to be closely |
| watched by the market to get a sense of the economic recovery process |
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| Overall, for the coming week, the nifty is likely to see supports |
| | around 4820-4750 and resistances around 4980-5050. The market undertone is likely to remain weak |
| |
| Sincerely, |
| ICICIdirect.com |
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