Weekly Market Forecast Report 27-1-09 to 30-1-09

Market may remain in downtrend with huge Volatility

Sensex lost 649.25 points or 6.96% to 8674.35 and Nifty lost 149.90 points or 5.30% to 2678.55 in the week ended 23/1/2009. Obama fever not worked for all the world markets. Globally all stock markets declined on the worry of declining GDP and increasing bank’s NPA. RBI quarterly review of the monetary policy on 27-1-2009 & results from index pivotal will be dictate trend. Volatility may rise, in truncated week, as F&O contracts for January 2009 series expire in this week.

After declining for 10 consecutive weeks, inflation, based on wholesale prices, rose by 0.36 percentage points to 5.6% for the week-ended 10 January 2009, from 5.24% for 3 January 2009. The PM’s economic advisory panel member Mr Saumitra Chaudhuri expects inflation to come down to 3 to 4% by the end of this fiscal.

On the flip side, the Prime Minister’s Economic Advisory Council on Friday, 22 January 2009 lowered India’s growth forecast for the current fiscal to 7.1%, against its earlier prediction of 7.7%, on account of the impact of the global meltdown.

ONGC, Bhel, Maruti Suzuki India, Mahindra & Mahindra, Cairn India, BPCL, Titan, Mundra Port, Tata Power, HPCL, Gail India, Century Textiles, NMDC, Nalco, will declare their December 2008 quarterly results in the forthcoming week.

Use Stop loss strictly in your every trade, because market is heavily volatile with narrow trading range.

INDEX	THIS WEEK CLOSE 23-1-09	PREVIOUS WEEK CLOSE 16-1-09	PERCENTAGE CHANGE (%)
SENSEX	8674.35	9323.59	-6.96
NIFTY	2878.55	2828.45	-5.30

NIFTY FUTURE

NIFTY FUT. (2655)
This week is closing of JAN-09 future and option, so, you may see heavy volatility in nifty, keep strict stop loss in every trade. Nifty is having strong resistance of 2720. If close above this level for at least 2 times then u may see 2789-2868-2900 and if close below 2650 then sell nifty for the target of 2565-2498.

BPCL(366.60)
Sell this stock if close below 361 for target of 651-337. Keep stop loss of 373.

AMBUJACEM(66.10)
On chart this stock showing bearish trend, so sell below 64 for target of 61-57. Keep Stop Loss of 68.

CAIRN(152)
buy above 157 for target of  162-167. Keep stop loss of  148.

FEDERAL BANK(140.50)
On chart this stock made double bottom, so buy above 145 with stop loss of 135. Target is 151-156.

Rupesh Yatesh Dalal
MARKETCALLS