EP Report: Indian Stock Market outlook (Monday, May 16,2010 - Friday, May 21, 2010)
Markets across the globe have become highly volatile recently with huge upswings and downswings in the major global indices. The reason for this primarily remained the uncertainty about the European Union sovereign risk. Though, the huge bailout package announced by the EU and IMF to rescue the situation managed to provide some initial relief, uncertainty over the details and fine prints have still not become clear. This is encouraging investors to take out their money from equities and park that to safer option viz. US treasury and gold, which has already breached its all-time high and has been hovering around US$1250/ troy ounce.
- Metals remained the worst hit sector so far this month due to worries over China measure to cool off its over heating economy. The uncertainty is likely to continue and would continue to keep the markets volatile.
- On the global front, US FOMC rate decision is due on the coming Wednesday.
- Also, the comments by the Fed would be closely watched by the market.
- For the Nifty, the support is likely to be seen in the range of 4980-5000 while resistance seems to be around 5150 level.
- The overall sentiment is likely to remain weak for the markets.
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