Outlook for Week Ahead - December 08, 2012 - HDFC Securities

Indian shares are expected to remain volatile as some market participants argue that the reform optimism-led buying may give way to a technical correction. Markets will watch any development on the U.S. "fiscal Cliff". Rate-sensitive sectors such as banks, real estate and automobile will be in focus next week as the outcome of two key data points, industrial output and wholesale price index, will set the tone for the central bank's policy meeting on Dec. 18. Bharti Infratel IPO with a price band of 210-240 rupees per share opens on Dec. 10 for cornerstone investors and a day later for the public, closing on Dec. 14. It will be watched closely, being one of the biggest share sales in recent times and coming from the troubled telecom sector. Market participants will closely observe any movement in the insurance and pension bills in parliament.

On the political front, assembly polls will be held in Gujarat in two phases on 13 and 17 December 2012. Counting of votes of assembly elections in Gujarat and Himachal Pradesh (HP) Pradesh will take place on the same day on 20 December 2012. Assembly polls were held in HP on 4 November 2012.

With the markets correcting on Friday, traders will need to watch if the Nifty can hold above the 5,838 supports in the coming week. These are crucial levels as they correspond to the shortterm trend reversal levels of the market. Nifty could rally towards the 6,000 levels if the 5,838 levels are not broken next week.

Source : Equity Bulls

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