MARKET STRATEGY 16 MAY 2012

The peripheral European nation’s future in the euro currency bloc is in doubt as all efforts to form a new government have failed.

A weak Wednesday is expected as Indian equities are set to fall again after a small breather on Tuesday. The ‘risk-off’ trade continues amid growing concerns about the political impasse in Greece.Fresh Greek election is imminent, raising fears of a disorderly exit from the eurozone and a broader meltdown

India is facing its own set of macro-economic problems, dragging down the rupee and exacerbating the selling by FIIs. investors are advised to Stick to a defensive portfolio and avoid any adventures.

Indian markets ended on a positive note on Tuesday, thus ending five days of losses, with the NSE Nifty closing above 4900 levels. A change in the ongoing trend would be confirmed only if the Nifty crosses 4970; till then any pullbacks are likely to be met with fresh selling pressure. The immediate support for the Nifty is seen around 4880 levels.

Piramal Healthcare is expected to announce an acquisition today, according to reports. It is likely to acquire US-based assets in the healthcare segment.

Cairn India, Bank of Baroda and Godrej Consumer have been added in the MSCI India index while Suzlon has been removed from it.

Corporation Bank, Page Industries, IL&FS Transportation, Indiabulls Power, MOIL, Polaris Financial and Suzlon have been added in MSCI India Small-cap index while 31 stocks, including Videocon Industries, Shree Cement and SKS Microfinance, have been deleted.

Key Results Today: 3i Infotech, Bajaj Finserv, Bajaj Finance, Blue Star, Dish TV India, Edelweiss Capital, JK Lakshmi Cement, Zee Learn and Zee News.