ICICI Securities: Week ahead: Oct 11th

Previous Week : Some profit booking took place at higher levels
	After witnessing a one-sided rally since early September Indian markets paused for a breather in the previous week. Though both indices started the week on a strong note and tried to go up, they could not hold on to the gains, as some profit booking took place at higher levels. FIIs, however, remained net buyers in the cash equity segment.
		On a week-on-week basis, the Sensex lost ~195 points or 1% to
		close at 20250.26 while the Nifty also fell by ~40 points or 0.7% to finish at 6103.45
		Before falling, however, both the Sensex and Nifty made their fresh
		2010 highs at 20706 and 6223 respectively. Except FMCG, all other sectors remained positive while realty, metals and banking continued to be the top gainers for the week
Week Ahead : Earning season would be important for Indian markets to take direction for the short to medium term
	Broad fundamentals for the markets have not changed. However, it seems that new and fresh triggers are needed to take the markets significantly higher from here. The step by Japan to cut its benchmark interest rate to near zero percent supported the US market to a great extent. Indian markets, however, did not see that kind of impact. The reason behind this can be that Indian markets already have seen a smart rally outperforming the global markets on a consistent basis this year so far. At this point, the Q2FY11E earning season would be important for Indian markets to take direction for the short to medium term.
		We continue to reiterate that unless any large negative development
		takes place globally with a potential to suck liquidity there will not be any significant downside in Indian markets
		Therefore, buying opportunity still exists on every dip. On the
		economic data front, the IMF has revised up its 2010 GDP growth forecast to 9.7%
		Indian markets, however, would be more interested in the coming
		weeks IIP data for August and US FOMC minutes
		For the coming week, there may be some pressure on the markets
		However, for the Nifty the supports are likely to be 6000 followed by
		5900
		On the higher side, we may see a sharp movement if the Nifty can
		cross 6200 on a closing basis