Weekly Beeps - Greece crisis applies grease to Nifty's slide; Nifty lost 2% to end at 5,366

Markets closed the week on a pathetic note as tensions of Greece and technical break out level of 5350 for Nifty hit trader’s minds. Both the Sensex and the Nifty lost 2% each to end at 17,871 and 5,366 respectively. The IT index was the worst performer followed by Banking and Auto indices. The RBI’s policy review was exactly in line with market expectations. But, the central bank remains wary of inflation, which is proving to be quite stubborn. It has also cautioned about the weakening global economic conditions. So, expect at least another 50 bps hike this year.

FII flows have turned negative again and volumes have been muted. Overall investor morale is low amid the ongoing policy drift at the Centre. Next week is devoid of any major domestic event. Therefore, the market will mostly swing to the beats of the offshore cues. In this context, the FOMC meet on June 22 and US GDP data will be among the crucial events to keep an eye on.

Markets : Holding on...

Nifty remarkably held on to 5350 levels but lot of pessimism on the street and low PCR ratio indicates more downsides ahead in the coming days. While there might be temporary bounce from the current zone of 5350, we believe markets might slide in the next week. Having said that except for Greece crisis we do not see a major damage to the structural bull run.We are one of the strongest believers of Indian market, pegging a target of 30,000 for Sensex by 2013/2014. Extremely volatile week ahead, Fasten your seat belts.