The Sensex and the Nifty ended flat this week. The CNX IT Index was the top gainer among the sectoral indices. Inflation jumped to a one-year high in December 2009, reinforcing views the Reserve Bank of India (RBI) will start increasing reserve re-quirements later this month to contain price pressures as the economic recovery strengthens. Financial markets have mostly factored in a 50-basis point rise in the cash reserve ratio (CRR), the level of cash banks must keep with the central bank, on 29 January 2010 but recent strong data has raised expectations that policy rates might also be raised.
Last week, the Dow ended down 0.1%, the S&P fell 0.8% and the Nasdaq fell 1.3%. The Fed's next policy meeting is on 26-27 January 2010, and it is not expected to make changes to rates or its promise to keep borrowing costs at rock-bottom levels for an extended period.
Nifty Spot Weekly Range : 5200 to 5395
UPTREND: Immediate Resistance for Nifty lies at 5308, if breakout this level then we expect to 5346 and 5394. Then 5460 will remain as a Medium-term Resistance for Nifty.
DOWNTREND: On the contrary, Market has Support at 5210 and break down could take it to 5170 and 5140 levels. Then 5100 is the good support for the Nifty.
"THE NEXT BIG BUBBLE" ?
As per the recent comments from Americas top most short seller James Chanos, the man who predicted the Enron fraud and made a fortune out of it. China is the next big bubble to burst which will be 1000 times more than the Dubai saga. And as per one of The New York Times report , the Chinese government has pumped too much cash into the economy. As a result, there are signs of a bubble in Chinese housing and credit markets. But, few pointers LIKE foreign currency reserve of more than $ 2 trillion, largest automobile market ahead of America and largest exporter ahead of Germany and is going to be the second largest economy surpassing Japan, highest growth of infrastructure in all senses like bridges, dams, roads, real-estate etc. and last but not the least, cheap manufacturing cost adds to the cost advantage for all items starting from electronics to all other goods surely tend to disagree with the above and China will definitely grow and that too with highest growth rate in the world.
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