The week gone by was volatile on thin volumes because of the festive season. It began on a weak note but post the Christmas holiday, things turned around. Markets gained on the remaining three days to post weekly gains of 334.65 points or 0.94% on the BSESENSEX to close at 36,076.72 points. NIFTY was up 105.90 points or 0.98% to close at 10,859.90 points. The broader indices saw BSE100, BSE200 and BSE500 gain 0.95%, 0.85% and 0.80% respectively. BSEMIDCAP gained 0.70% but BSESMALLCAP was down 0.19%.

The Indian Rupee gained 21 paisa or 0.30% to close at Rs 69.94 to the US Dollar. Dow Jones recovered after having lost sharply in the previous weeks and was up 617.03 points or 2.75% to close at 23,062.40 points.

Coming to the year to date position with a day’s trading to go, SENSEX is up 2,019.89 points or 5.93% up at 36,076.72 points. NIFTY is up 329.20 points or 3.13% up at 10,859.90 points. BSEMIDCAP is down 2,462.19 points or 13.82% down at 15,360.21 points while BSESMALLCAP is down 4,625.03 points or 24.05% at 14,605.69 points. Dow Jones is down 1,656.82 points or 6.70% down at 23,062.40 points.

Its been a tough year for equities globally and for India the sharp spike in crude prices really hit badly. With that the rupee too went for a toss. Fortunately crude prices fell even more sharply than they rose and are trading at 17-month lows. With that the rupee has also gained significantly and is now around the 70-dollar mark.

December series expired with small losses of 78.90 points or 0.73%. Even though the market gained post-Christmas on Wednesday and Thursday, it was just not enough to turn the series around. December series ended at 10,779.80 points, a loss of 78.90 points or 0.73%.

The week ahead would see global markets remaining closed on New Year Day while India would be open for trading. Expect markets to move up in the initial part of the week with virtually no institutional participation and then markets looking at global cues and responding accordingly. There are no negative cues currently for India with crude prices on a softer note and the currency gaining ground. Expect markets to maintain their upward bias and momentum as one finds the disbelief in the rally continuing.

Use rallies to sell and falls to buy as volumes would remain thin in the coming week. People would take a week to return to normal after year end festivities.