Previous Week : Sensex was up by 937 points to close at 18815 levels
Indian equities traded higher for the week. They closed in the green in four out of five trading sessions during the week. The domestic institutions were net buyers throughout the week. Global news flow continues to remain bad as radiation fears surfaced in Japan and continued unrest in MENA region.
  • On a week-on-week basis, the Sensex was up by 937 points or 5.2%, to close at 18815 levels
  • The S&P CNX Nifty also closed in the green up by 279 points, or 5.2%, to close at 5654 for the week
  • Buying was seen in sector heavyweights such as BHEL, Infosys, Bharti Airtel, Tata Motors, Axis Bank, HDFC, ICICI Bank, SBI, L&T and ITC
  • Some positive news on the economic reform such as the introduction of the Constitution Amendment Bill in the Lok Sabha to facilitate the implementation of the Goods and Service Tax (GST) and the Banking Laws Amendment Bill in Parliament boosted the sentiment
  • Food inflation for the week ended March 12, 2011 came in 10.05% (v/s 9.42% last week). The index for primary articles rose from 12.3 to 13.5% for the week under review, while that for fuel remained unchanged at 12.8%
  • Crude prices at alleviated levels and unrest in MENA region along with renewed fear of radiation in Japan remains major factors of concern in the coming week
  • The news on the economic front was not as encouraging as a report from the National Association of Realtors (NAR) cited that existing home sales fell by 16.9% to an annual rate of 2,50,000 in February (much more than anticipated) in February. This was the lowest new homes sold data since the government began keeping records in 1963
  • Crude (nymex and Brent) remained in the narrow range for the week
    (showing no signs of a decline)
  • The release of a report from the Labor Department showing that initial jobless claims fell to 3,82,000 in the week ended March 19, 2011 from the revised figure of 3,87,000 of the previous week

Week Ahead : Nifty has crucial support at 5480 Levels
  • On Friday, Indian equity benchmarks surged to a 2-month high on closing. Market is expected to trade volatile, ahead of the March contract expiry on next Thursday. In the month of March till date, FII have been net buyers to the tune of 703 crores while domestic funds are net buyers to the tune of 3,465 crores. DIIs have been net buyers since last 5 trading sessions.
  • Among the key global data to watch for in next week is US GDP, US Chicago purchasing managers index, US real personal consumption expenditure, US Construction spending (MoM), European economic confidence data
  • On Friday, Nifty has managed to close above the 200 days EMA which is placed at 5584 levels for the first time since January 27, 2011
  • This is a positive sign for the index if it manages to close above the level for next few trading sessions
  • For the coming week Nifty has crucial support at 5480 where it has a gap up support at the 50 days SMA
  • On the higher side 5750 is the crucial resistance from the 100 days SMA (Simple moving Average) sustaining above which, a closing basis can see the index testing 5800 which is the major previous high of January 25, 2011

Source: ICICIdirect