Market Synopsis

Globally, while S&P 500 is rollicking on the back of good US economic data
supported by the strength in the USD index, things have been very gloomy
on the eastern side of the Atlantic, the Eurozone, and continues to sink deeper
into the pit.    Economists are now talking that after Cyprus, may be Slovenia
and Hungary need to be bailed out next.

Locally, India's current account deficit has touched record highs.
What is more concerning is that the government is relying heavily on FDI and
FII inflows to finance the CAD rather that taking strong measures at augmenting
exports.    While exports cannot improve in the short term, what is glaringly
missing is the government's inaction at taking policy measures to provide fillip
to exports.

Market Outlook

F&O expiry, financial year end, headwinds emanating from the eurozone
in terms of the Cyprus bailout and its probable ramifications on the future
of Euro, lack of reform measures from the FM and the pullout of DMK
from UPA may all have weighed on the market sentiment causing Nifty to
trade at lower levels during the fag end of the March series.

But, going forward, a relief rally is quite possible just before the rolling out
of the earnings season.    In such a case, 5900 may be revisited on the upside.

Global Economic Parameters

Some interesting economic parameters.

Country                              Capacity Utilisation Rate          GDP (YoY)

China                                                                                     7.9
Eurozone                                              77.2                          -0.9
France                                                  78.6                          -0.3
Italy                                                      68.3                          -2.8    
Spain                                                    68.86                       -1.9
UK                                                       53                              0.3
US                                                       79.06                         1.6
India                                                      74.7                         4.5

Market Outlook

Nifty for the next couple of trading sessions is likely to be :

Resistance     2     :     5785
Resistance     1     :     5700
Support          1     :     5615
Support          2     :     5610

Market Synopsis

The dismal demand situation in Europe can just be imagined by the
below mentioned facts  :
a.     Motor majors like General Motors, Ford Motors and Honda Motors
        have actually shut down their plants since mid - 2012.
b.     Car prices in Europe were cut 14% on average last month, spreading
        across several motor majors, to lure improvement in sluggish demand
        sentiment.
c.     Ironically, according to the latest data, car sales actually dropped by
        10% over previous month.

Locally, DMK has pulled out from the UPA sending shivers across the market.
Therefore, the market sentiment for the rest of the week is likely to remain
cautious and tentative.

Market Synopsis

Cyprus turmoil has unnerved the markets today.
What is more concerning, is the dangerous precedent that this bailout
sets in terms of other so-called depositors guarantees.

This bailout has added fuel to the already fast dwindling prospects of Euro's
future.    This may also trigger a fresh capital flight scenario in the eurozone.
Volatility may rise in eurozone stock market indices.

Locally, market is keenly eyeing RBI policy on March 19.   
Market is expecting a minimum of 25 bps rate cut.

Market Outlook

Nifty for the next couple of trading sessions is likely to be :

Resistance    2    :    5930
Resistance    1    :    5925
Support         1    :    5890
Support         2    :    5785

Weekly Outlook

Strong US economic data supporting the strength in USD index.
Recovery in US will be celebrated by the markets positively.

Locally,  the Finance Minister in his Budget speech clearly expressed his resolve
to tighten the fiscal policy.    This may prompt the RBI to shift its priorities
from hawkish monetary policy to a growth oriented one at its meeting on 19 Mar.

Until then,  Nifty is likely to remain sideways at elevated levels.

Weekly Review

Maruti Suzuki India Ltd.,  Tata Motors and General Motors have sliced
production in varying proportions in order to arrest stockpiling of inventories.

Consumption demand seems to be much weaker than anticipated,
at least in the Auto segment.

Global Economic Parameters

How about going through some comparisons while sipping some coffee :

Country                           Unemployment Rate             Govt. debt to GDP

China                                        4.10                                   25.80      
Eurozone                                  11.90                                  87.30  
France                                     10.30                                   86.00 
Italy                                         11.70                                 127.00
Spain                                       26.02                                  69.30
UK                                            7.80                                  85.00
US                                            7.90                                 101.60 
India                                          9.30                                   68.05

Weekly Outlook

The market for the coming week is likely to be :
Resistance    2    :    5795
Resistance    1    :    5770
Support         1    :    5670
Support         2    :    5620