BEFORE WEEK
Gandhi Kutir
Market to test all time high
The market is likely to head higher, and test all time high in the
coming week, as buying is likely to continue at higher levels, led by
robust set of results from India Inc
The BSE Sensex settled above the 14,300 level at 14,303.41 on Friday,
and is likely to test it's all time high of 14,723.88 struck on 9
February 2007 . Technically it has given a break-out above 14,300 and
is likely to face next resistance in the range of 14384-14479. While
strong support exists 14160 and 14100 levels.
Similarly, the S&P CNX Nifty also breached a major hurdle of 4200 and
is eyeing all time high of 4245.30. It has resistance in range of
4245-4280, while support exists at 4,180 and 4,120 range.
With liquidity remaining abundant with both domestic and overseas
investors turning bullish, the market is likely to test all time
highs
Inflation which has been a concern in the past few weeks, seems to
coming in cooling. These will boost the sentiment further. The Reserve
Bank of India (RBI) Governor Y V Reddy has kept inflation target of
4.0-4.5% for the medium term.
Also the progress of the June-September monsoon will hold the key to
the direction of the domestic bourses. The Indian meteorological
department forecasted annual monsoon rains would arrive in Kerala on
24 May 2007 . The weather office said last month that this year's
monsoon rains were likely to be 95% of the long-term average, with a
5% margin of error. The annual monsoon is vital for India 's economic
health as it provides the main source of water for agriculture, which
generates more than a fifth of gross domestic product (GDP).
On the flip side, brent crude oil prices advanced to strike a fresh
eight-month high above $70 a barrel, as US refinery problems fanned
concerns about potential gasoline supply bottlenecks just before the
summer-driving season begins. Any sharp rise from this levels, may
dampen the sentiment.
Jindal Steel & Power, Steel Authority of India, Bank of India, Bharat
Forge, Punjab National Bank, NIIT Technologies, Bombay Dyeing, BPCL,
ITC, Godrej Industries and Bank of Baroda are the major results to be
unveiled in the coming week
Torrent Pharmaceuticals, Alembic, Gokaldas Exports, TV Today Network,
Punjab Tractors, New Delhi Television, Divi's Laboratories, Monsanto
India, Adani Enterprises, Orbit Corporation, Parsvnath Developers,
Everest Kanto Cylinder and City Union Bank will also declare their
results in the next week