Weekly Trading Highlights. 1st sep. 2008.

The week that went by
Sensex rose 163.04 points or 1.13% to 14,564.53 in the week ended Friday, 29 August 2008. The S&P CNX Nifty gained 32.55 points or 0.75%
at 4,360 in the week. Foreign institutional investors (FIIs) sold shares worth Rs 1,211.70 crore in August 2008 (till 28 August 2008). FIIs sold
shares worth Rs 28,513.60 crore in the calendar year 2008. Mutual funds sold shares worth Rs 700.40 crore in August 2008 (till 27 August
2008). The gross domestic product (GDP) grew 7.9% in the June 2008 quarter from a year earlier, easing from the previous quarter's 8.8% rise
as industrial activity slowed due to monetary tightening. The GDP growth in the first quarter of the current fiscal year was lower than market
expectations of a rise of a little above 8%. The government released the GDP data during trading hours on Friday, 29 August 2008.


Technical Outlook :NSE Nifty (Last Closing: 4360.00)
Last week was a highly volatile trading week. After a positive opening, Nifty and Sensex witnessed a huge sell off, before recovering a portion
of the loss during the last trading day. Market is expected to remain volatile in the coming week also.
Technical Indicators like Stochastic Oscillators are indicating slight recovery from these levels. However, MACD is still in the selling mode. RSI
has closed above 50 points mark.
Market is expected to continue the recovery in the opening half of the coming week. Selling is expected to emerge from the higher levels.
For NSE Nifty, 4400 is likely to act as the critical resistance level for the coming days. A close above this is not expected at this point of time.
However, a close above this will find next resistance at 4480.
4300 will be the Critical level for the coming week. If falls and sustains below this, 4195 will be the downside support, followed by 4050.

Week Ahead :
The market may extend Friday’s (29 August 2008) strong gains triggered by softening inflation. Inflation has been a major cause of worry for
the domestic markets since the past few months. Market will also take cues from another meeting of Nuclear Suppliers group in Vienna that
begins on 4 September 2008. Market will closely watch developments on the Indo-US nuclear deal. As per reports, Japan plans to support a
civil nuclear accord between the US and India. Japan will back the deal, at a two-day session of the Nuclear Suppliers group (NSG) in Vienna
that begins on 4 September 2008. US plans to sell nuclear power plant technologies and fuel to India under a bilateral nuclear cooperation
agreement. All 45 members of the Nuclear Suppliers Group including Japan must approve the nuclear accord, which the US Congress must
also pass for the deal to come through.

_Report from JRG SECURITIES Official Website