MARKET THIS WEEK

 Markets across the globe which looked down and out for the count by mid-week, witnessed a U-turn over the last few trading sessions of the week.Indian markets which came under huge selling pressure during the earlier trading sessions of the week, witnessed value buying and short covering in the latter half of the week, as the global markets suddenly seemed to improve.There was also the factor of the derivatives expirty on Thursday that triggered huge short-covering which too helped our indices to surge.Buying which emerged in the latter half of the week was further aided by positive news about a resurgent north European economic scenario and some easing of tensions in Korea.The settlement between the Ambani brothers was another important event that took place at the start of the week. As a result, ADAG stocks rose between 5% and 20% in the week, with RNRL leading the pack.The erstwhile battered metal stocks, witnessed considerable value buying in the latter half of the week following a late rebound at the LME.The first of its kind, Standard Chartered Bank's IDR issue did not get a wholehearted response from Indian investors, indicating either a lack of interest or lack of understanding of the new concept of IDRs.With the result season now ending and all major positives appearing discounted, among local factors, it appears to be only the advent of the rains that may act a catalyst to sustain the rally.One may now keep an eye on fertiliser stocks with the monsoons inching closer.Needless to say, the announcement of the fourth quarter GDP data on Monday too could influence the near term market trend going forward.Despite the fact that the Indian benchmark indices gained about 2.5% during the week, one may avoid taking aggressive positions hereon, as there is an ominous fact that must not be overlooked.The FIIs were net sellers during the week and that is a negative near term indicator.Whether this is merely profit taking for re-entry at lower levels or a pull-out for a specific time frame could well determine the medium term trend for the market.Hence, we recommend taking partial profits off the table at successive market upswings.