Previous Week : BSE Sensex closed at 18,755.45, while the NSE Nifty closed at 5697.70
Indian equity benchmarks traded with high volatility during previous week trade. Benchmark Indices finally breached its previous three weeks trading range as the Nifty faced heavy selling pressure after the RBI kept the interest rates unchanged but cut the Cash Reserve Ratio for banks by 25 bps while lowering the GDP forecast for FY13, in its half yearly monetary policy review on Tuesday. However the index found support near 5600 levels and bounced back to regain the lost ground in the last two trading session of the week to close the week with at gain of more then 0.5%.
  • The 30 share BSE Sensex closed at 18,755.45 up by 130.10 points or 0.7%, while the NSE Nifty closed at 5697.70, up by 33.40 points or 0.58%, week on week basis
  • Bajaj Auto, Mahindra & Mahindra, Maruti, IDFC, Cipla, Hero Motocorp, Infosys Technology and Wipro were the major gainers in the index where as BHEL, BPCL, Hindustan Unilever and ONGC were the key draggers amongst Nifty constituents
  • Walking a tightrope on managing faltering growth and high inflation, the RBI kept the interest rates unchanged but cut the Cash Reserve Ratio for banks by 25 bps
  • The central bank upgraded its inflation outlook but hinted at more policy easing over the next few months. Also, the Purchasing Manager's index from HSBC India signalled improvement in the health of India's manufacturing sector
  • The headline index, a measure of factory production, nudged up to 52.9 in October from 52.8 in the previous month
  • Brent crude closed at $108.82/barrel down by 0.5% on a weekly basis (as on Thursday)
  • In the week from October 29- November 2, results of Sensex companies were broadly in line with estimates. While Dr Reddy Labs and Wipro reported numbers which were in line, Maruti Suzuki reported numbers which were slightly better than estimates.

Week Ahead :FIIs were net buyers to the tune of INR 8523 crore
Nifty on the weekly chart has formed bullish Hammer like candlestick pattern, which is a bullish reversal pattern but require follow through buying action above its head. Nifty after breach of the short-term trading range (5630-5730) in Tuesday's session has clawed back into the said trading range during Friday's trade.As indicated earlier, the current corrective phase, which is nearly four weeks old, could extend for another week as well, based on the time equality with the previous up-leg, which consumed five weeks. A key observation within this corrective phase is that while time wise the index is set to achieved parity with the previous up move, price wise correction has been only to the extent of 38.2% of the September rally (5215-5815). This indicates an overall healthy tr! end as bulls take a breather and work off the overbought conditions while limiting the price damage.
  • Nifty in the short term has immediate support at previous week low of 5585, below which it has major support at 5500 levels from the 50% retracement of the September-October up move and the rising gap area of September 14, 2012
  • For any immediate upsides to materialise the index needs show strength above the 5730 levels to regain the lost momentum and head for a re-test of the upper band of rising channel currently placed around 5850-5930 levels
  • In the coming week, Sun Pharma, Bharti Airtel, SBI, ONGC and Tata Steel are expected to come out with their results
  • In the month of October, FIIs were net buyers to the tune of 8523 crore while DIIs were net sellers to the tune of 4584 crore
  • Key data/events to watch in India would be the India October Markit services PMI & Local car sales
  • Globally, key data/events include initial jobless claims, MBA mortgage applications, ISM non manufacturing composite and University of Michigan confidence index in the US and interest rate decision, PPI data and Sentix investor confidence in the Eurozone.