Equity Market Outlook for the Week:

Indian market bid farewell to 2009 on a strong note, with the Sensex touching a new high for the year while the Nifty closed above the crucial level of 5200. The Sensex shot up by 80% in the year while the Nifty gained 75%The stock market in 2009 mostly derived strength from the government's fiscal packages and sustained capital inflows. India recorded 7 % growth in the first half of this fiscal, thanks to increased manufacturing activity. Foreign Institutional Investors (FIIs) have bought shares worth over Rs 80,000 crore - a record high.Foreign Institutional Investors (FIIs) pour in US$17.4bn into Indian stocks year 2009, including US$14bn via QIP, IPOs, ADRs, GDRs, etc. Last year, they had pulled out US$13bn in the wake of the western financial turmoil and the subsequent slowdown in the global economy. Entering the New Year, however, a lot of this has changed. Large price rises have eaten up what were seen as historic opportunities and central banks are preparing to haul back the liquidity. Some tight 2009 correlations are already breaking down, leaving investors to work a bit harder for their buck. 2010 is going to be a year of discrimination with a very long bias toward quality, the need for more selective thinking also comes from the state of the global economy, which although improving, is both uneven and breakable. Investors have become more cautious about the investment backdrop as a result, a caution intensified by debt problems in Dubai, Greece, Spain and elsewhere.we feel that Nifty & sensex can break its life time high of 21k and 6300 this year also but for the week Nifty having a strong resistanced @ 5285 level if Nifty will able to settle above this level than 5400 is not far for market and down side market took support @ 5150 & 5080.


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