15-Feb-10

Markets ended the losing streak and bounced back from the lows of last week amid volatile trading. Both Sensex and Nifty gained more than 2% with all mid cap indices participating. Almost all sectors participated during the last week’s rise as most of them have beaten down to their respective multi month lows within a couple of weeks. Unitech, Ambuja Cement, Hero Honda, Grasim, JP Associates, Infosys and ACC were the major Nifty gainers all gaining over 5% during the week. Tata steel was the major loser with nearly 2% loss.

The global markets are marred by the deepening fears of sovereign defaults as some of the European nations fail to muster enough support on the bailout packages. Though there is consensus to save these nations from going into bankruptcy, there is much haggling going on as to who should be funding. Nifty faces major resistance at 4940 in the short term. Possibilities are open for fall towards 4600 of Nifty fails to sustain the current levels. It will be a stock specific market with range bound index movement. Pick the strong stocks from the mid-caps for big gains.