Weekly Outlook

The coming week will be eventful in terms of companies announcing their quarterly results.
Companies like UCO Bank,  IDBI Bank,  Indian Overseas Bank,  Bank of Baroda,  Yes Bank,
Axis Bank,  Bajaj Auto,  HCL Tech,  TCS,  Coal India,  ITC,  HDFC Bank,  Federal Bank,
and the big boy Reliance Industries Limited are amongst others that are scheduled to announce
their Q3 results.    Inflation data is also expected.

In the light of the above,  markets may remain stock specific.    Having said that,  Nifty is
precariously trading near the edge of the cliff.    No matter what,  Nifty must stay above
6120 -- 6140 range.  

Market Summary

The markets were experiencing listless trading sessions on account of the gloomy sentiment for
the past one week.    The upcoming earnings season was another factor that led to the continued
choppiness.

Today,  Infosys came out with its quarterly numbers and FY 14 forward guidance which were much
better than what the street was expecting.    The foreign trade data also contributed its bit towards
the exuberance on the dalal street.    But how far will the euphoria last?    One would suspect this
intraday rally in Nifty after looking at the way it closed. 

Market Outlook

It appears that Nifty is evenly poised at 6300 odd levels    It also appears that markets are
showing signs of fatigue on the upside.    Having said that, the upcoming earnings season and
the fresh allocations from the global fund managers for the calendar year 2014 will bear out
the trend of the markets for the January series.

Santa Claus Worries

The strong economic data that has emerged from the US over the last fortnight is making a
strong case for the tapering of the US monetary stimulus program.    The trending yield
differentials of the developed world vis-a-vis the US bonds and the gains that the USD has
made against some major currencies like the British Pound,  Canadian and the Australian
Dollar, etc.seem to suggest that the tapering is just a matter of time.

The moot question is -- when will the scaling down actually commence from ?      and,
                                    what will be its nature ? 

Weekly Outlook

The kind of profit booking sessions witnessed in the post state election euphoria on
Monday suggests that the sentiment has turned around.    The week IIP data and the
CPI number further added to the gloom.    The absence of buying even at lower levels
is worrisome.

The coming week has major events in terms of the US Federal meeting and the subsequent
Reserve Bank of India policy meet.    These events will clearly bear out the course of the
markets for the rest of the December series.