Weekly Newsletter - Dec 24 2009

After being in doldrums for most of the month, the Indian market suddenly sprung back to life thanks largely to the short covering ahead of the F&O expiry. The key indices made a new high for 2009 on the eve of Christmas, rekindling the festive spirit. Two extended weekends and the derivative settlement could mean that the market will be volatile. The Nifty could surpass 5200 but further advance could hit speed breakers as valuations are not cheap and a few concerns are still in place. At the same time, a big slump is not on the cards. The Nifty is likely to find support at 5100 and 5000.
Global markets could see choppy, inconclusive trade as many are expected to have opted for a long year-end weekend. Also, a few markets could even be shut till the start of the new year. After having made a spectacular comeback, the bulls are unlikely to take any undue risks. The best thing to do next week would be to keep away from the markets and take a long hard look next year. Enjoy the holidays and begin afresh in 2010.