>What's Happening? & What's Next? (ANAGRAM)

What's happening?
What's Next?

What's Happening in the Markets?

• WORLD INDICES NEAR YEAR HIGHS
• COMMODITIES MULTI MONTH-HIGHS
• MARKET SURGED ON FOREIGN INFLOWS
• FDI TURNED TO BRIC COUNTRIES

What's Happening in India?

• MONSOON IN INDIA WORST IN 37 YEARS
• CAPITAL ACCOUNT IN SURPLUS AFTER TWO QUARTERS
• CORE SECTOR GROWTH ZOOM TO 7.1%
• BURGEONING WPI - IMPEDIMENT FOR GROWTH
• NET REMITTANCES-SECOND HIGHEST EVER

What's Happening in the World?

• US AUTO SALES PLUNGED IN SEPTEMBER
• US EXISTING HOME SALES LOSE MOMENTUM
• US UNEMPLOYMENT HIGHEST IN 26 YEARS
• US FACTORY ORDER POST FIRST DROP SINCE MARCH
• WORST EMPLOYMENT HIKE IN RECENT DECADE
• COSTLESS ASSETS ALLOCATED BY IMF

What's Next?

• RBI- TO CONTINUE WITH SOFT POLICY
• WHATS NEXT FOR DOLLAR : 85 OR 70
• MARKETS MOVING FROM UNDERVALUED FROM FAIRLY VALUED ZONE

What's the Outlook?

OUTLOOK & STRATEGY

• Dollar weakness is fueling flows into commodities and emerging markets equity.
• Markets seems to be running ahead of fundamentals, moving from undervalued to fairly valued zone
• Investors should wait for a large pull back before committing fresh resources to equities.
• Learning from History, we anticipate markets to remain lackluster till diwali.
• Major resistances for the nifty lies at 5200 and support lies at 4750.
• Markets trading in a range between 4920 and 5050.
• On break beyond the range traders should play for 4780 or 5170 via October Nifty Options

To see presentation and graphs: WHAT'S HAPPENING?