News - Weekly E Magazine : RBI Policy to set the tone in MARKETS - Previous Week
Key benchmark indices traded with a negative bias during previous week trade with high volatility. Nifty started the ...
07-28-2012 09:06 PM
Weekly E Magazine : RBI Policy to set the tone
Key benchmark indices traded with a negative bias during previous week trade with high volatility. Nifty started the week on a bearish note breaching the 200 days EMA with a gap down action on Monday's trade. Nifty extended losses in the second half of the week as the index came under heavy selling pressure on Thursday's trade. It managed to recoup some of its losses on the final day of trade mainly on the back of positive global cues. The broader markets witnessed deeper cuts as profit bookings intensified in the midcap and small cap space, which closed with losses of ~4.8% each on weekly basis.
- The 30 share BSE Sensex closed at 16839.19 down by 319.30 points or 1.86%, while the NSE Nifty closed at 5099.85 down by 105.25 points or 2.02% week on week basis
- Banking, Capital Goods, Realty, Metals and Auto stocks were the major draggers in the index during last week's trade whereas Cement and FMCG stocks were the major gainers in the index
- In the Capital Goods space, Larsen & Toubro reported a good set of numbers, on both fronts of order inflows and execution. In the banking space, YES Bank reported set of strong numbers, whereas as Union Bank, Bank of India and PNB reported a dismal set quarterly performance, mainly on account of asset quality deterioration. Lupin numbers were slightly above estimates
- Nymex crude closed at $89.49/barrel increasing 1.5% on a weekly basis (as on Thursday)
- The markets welcomed comments by the European Central Bank President wherein he promised to do whatever was necessary to support the beleaguered Eurozone
- The markets also benefited from a batch of largely upbeat US economic data. A report showed a much bigger than expected drop in weekly jobless claims. A separate report showed a much bigger than expected increase in durable goods orders in June. Further, a report showed an unexpected drop in new home sales in the month of June. On quarterly earnings, Caterpillar and Boeing reported upbeat set of quarterly numbers, while Facebook reported losses
- In Asia, the index of Chinese manufacturing activity came in at 49.5 in July, up from 48.2 in June, while in Europe, Moody's revised the outlook on the AAA sovereign ratings of Germany, the Netherlands and Luxembourg from stable to negative
Nifty on the weekly chart formed a bearish candle with a shaven head and a long lower shadow signifying support around 5000 levels. Nifty on expected lines after breaching the crucial support area of 5170-5150 has dragged lower during the last week and had tested the 50% retracement of the June-July rally (4770-5348).
- We expect the index to gain some traction near the 5000-4980 region where it would complete 61.8% retracement of the June-July rally and 161.8% price extension of the first leg of decline from 5336 to 5169 in mid-July
- Pullback attempts in the near term will see increased volatility near the previous Monday's bearish gap area of 5164-5205. The market is expected to consolidate between the key pivotal of 5000 - 5200 during the coming week after it has seen a steady decline from the high of 5350 during the previous three weeks of trade
- In the month of July (till July 26, 2012), FIIs were net buyers to the tune of 3524 crore while DIIs were the net sellers to the tune of 4291 crore
- Key data/events to watch globally would be Eurozone Consumer Confidence, French 10Y Bond Auction, European Council Meeting, US S&P/Case-Shiller Home Price Indices (YoY) (May), US Consumer Confidence (Jul), Crude Oil Inventory, and US Initial Jobless Claims
- In India the key event will be RBI Policy. Key results to watch out next week would be IOB, GAIL, Titan Industries, IDBI, Ipca and Glenmark
Visitors found this page by searching for:
Tags for this Thread