The Paris based Organisation of Industralised nations raises its forecasts for global growth to 4.6% in 2010 and 4.5% in 2011 from 3.4% & 3.7% after a contraction of 0.9% in 2009. Unemployment in 31 members countries may have peaked at around 8.5%. The OECD also said that interest rates should start rising by the end of the year in the US, the UK and Canada, as the global economic recovery continues.

The OECD raised its forecast for US economic growth in 2010 and 2011 to 3.2% each, from 2.5% and 2.8% in its forecasts of last November. Japan's growth will be 3% in 2010 and 2% in 2011, up from 1.8% and 2% previously. The euro-zone will lag with growth of 1.2% and 1.8% this year and next, still marginally more than forecasts of 0.9% and 1.7% announced in November 2009.

US bank exposure to the European Union as a whole was $1.5tn, but still the US guys are giving surety that the banks would not end up having trouble. Marketsmen are predicting a double digit in US.

Germany proposed naked short selling ban to include all German-listed stocks. Italy has also joined Europe’s austerity club with deep spending cuts.

We cannot rule out that we will not see another blood bath in the world markets. It may happen as Euro countries are facing a major financial crisis and the Euro is under pressure. Other key economies like China, Japan, the UK and the US also have their own set of issues to overcome.

Nifty for the week made a low of 4786. On Tuesday Nifty closed below the trendline but closed above the 4800 mark. As mentioned in my last article that the Nifty if closes below the 4800 levels may take it to the next level of 4600. But the markets bounced back sharply. World markets too gave good support. Europe markets and the US markets bounced back sharply. Indian markets to closed higher. Nifty for the week closed higher at 5066 after making a low of 4786. Sensex closed at 16863 and the low was 15960.

Nifty for the week closed above its 200DMA, but faced resistance at the 20DMA. Nifty may face resistance at the trendline (as marked in the chart). Chart suggests that as per the wave theory, Nifty is in its 5^th wave. It was also mentioned that the RSI was near the over bought sold which bounced back sharply. MACD is also trying to be positive.

At the close of the Friday trading session, Dow futures were trading in the positive zone. Personally do not feel like the markets will still be so comfortable trading in the coming week. Markets have bounced back sharply in the last week. Nifty bounced back 250 points in the last 3 days and Sensex nearly 900 points. Nifty will face resistance at the trendline. We might see some more correction.

Last weeks article title was “ Is this the end of correction” and the markets bounced back from the low of 4786 as mentioned. It won’t be so easy for the investors to search for the diamond at the decent buy price. Investors are still advised to wait till some more time.

FII’s continued to dump their stocks in the Indian markets. They sold almost $1bn worth of stocks since last thursday. DII’s remained net buyers to the tune of $500mn.

Last weeks call..
Short TCS below 710 made a low of 691.

Short DLF below 260 made a low of 254.