Can only live in hope now

Nifty closed on a negative note last week down around 19 per cent on a weekly basis The Midcap closed down around 03 per cent and Bank Nifty closed down around 2 per cent The major sectoral losers were Consumer Durables and the Auto sector which closed down around 42 per cent and 29 per cent respectively Nifty has support at 59005850 levels The short term RSI is in the oversold and there can be bounce back from these levels Movements below these levels can cause further selloffs which can take Nifty towards 5786 200 DAM Major resistance lies at 5992 and 6012 New York UNITED STATES Traders work on the floor of the New York Stock Exchange NYSE on June 7 2013 in New York City Following news of a positive jobs report showing the economy added 175000 jobs in May the Dow Jones industrial average and SampP 500 rose 1 per cent in the early trading Pic Getty ImagesAFP Growth The HSBC Manufacturing PMI data fell to a 50month low led by a fall in output and of the slowdown in new orders The PMI data stood at 501 in May 2013 as compared to 510 in April The overall index remained above the 50mark that divides growth from contraction for over four years Morgan Stanley the global brokerage firm has estimated that India will grow at 6 per cent in the current fiscal The brokerage firm also pegged the Sensex target at 23000 by the yearend On the other hand the Bank of Merill Lynch lowered India39s GDP growth projection saying that the economy will expand at 58 per cent during the current fiscal on account of slow economic recovery The global brokerage also cut its growth forecast on India for the year 201415 to 68 per cent Metals In order to keep the current account deficit under control the government has raised the import duty on gold and silver to 8 per cent from the 6 per cent levied earlier Gold and silver imports were seen doubled to 75 billion in April and gold imports were alone up 27 per cent from a year ago period RBI has also come out with new plan to curb gold import The central bank has banned the import of gold by domestic consumers through bank credit and made the overseas purchase of gold a cash and carry business Under the new rule all gold import is to be made only on 100 per cent cash margin basis not on acceptance basis Tokyo JAPAN France39s President Francois Hollande R meets students and young people at the French Institute in Tokyo on June 8 2013 Hollande said on June 7 Japan39s big spending and ultraloose monetary policies aimed at boosting its flagging economy were quotgood newsquot for austerityweary Europe Foreign For increasing foreign fund flow and reducing current account deficit the government is planning to raise the Foreign Direct Investment FDI cap in various sectors including the defence sector which currently holds 26 per cent in FDI According to the Department of Industrial Policy and Promotion for the fiscal year 201213 India has seen a dip of around 38 per cent in FDI which stood at 224 billion as compared to 351 billion in the previous year The sector that received large FDI inflows in the year under review includes services construction automobiles and pharmaceuticals Data In the week US markets mainly remained mixed as of weak economic data The US manufacturing data contracted for the first time in six months Also the concerns that the Federal Reserve may end its bond buying plan added fire to the uptrend of the markets The major reason the markets were waiting was the monthly jobs report for further direction The Asian markets were seen tracking the footsteps of the American markets without much activity On the global front for the US markets IIP data as well as and retail sales data will be watched The initial and continuing jobless claims is the other major data to be looked at Rupee The BSE IT Index breached its 200 DMA of 6080 which is positive and going forward it has the potential to move towards 6378 100 DMA and 6500 levels So in the coming days more buying can be seen in IT stocks The Rupee is weak and may test 5735 levels the low which the Rupee tested on June 2012 The Rupee may bounce back close to this level because the HULrsquos parent company Unilever has to bring nearly 52 billion for the proposed share buyback programme V Guard Thermax Mind Tree Natco pharma are the few stocks which can give decent returns to investors Alex K Mathews is the author of Financial Services And Systems as well as Option Trading Bear Market Strategies published by Tata McGraw Hill He is also the technical and derivatives research head of Geojit BNP Paribas Financial Services Ltd The author may have a vested interest in investments he has recommended Feel free to email him at alexgeojitcom Geojit BNP Paribas has membership in and is listed on the National Stock Exchange NSE and the Bombay Stock Exchange BSE Disclaimer No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities or as advice to do so in any way whatsoever All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions based on information published here Any reader taking decisions based on any information published here does so entirely at his or her risk