Previous Week : Sensex was up by 215 points
Nifty continued to trade within the range of 5700-5950 with high volatility during last week trade. It slipped and tests the support level around 5700 levels on Mondays trade but managed to recover all its losses during the remaining three days of the week.
  • On a week-on-week basis, the Sensex was up by 215 points or 1.1%, to close at 19602 levels, whereas the S&P CNX Nifty closed in the green up by 59 points, or 1.1%, to close at 5884 for the week
  • Hindustan Unilever, ONGC, Mahindra & Mahindra and HCL Tech were the major gainer during last week trade, whereas BHEL, Power Finance Corporation and Rural Electrification were the major draggers
  • During the week, IMD forecasted near normal monsoons
  • The provisional data for FY2011 records Indias exports at US$245 billion, up 37.5% year on year led by an 85% year on year rise in engineering goods. Imports rose 21.5% to $350.5 billion in 2010-11
  • The strong growth was driven by higher exports to new markets in Latin America, Africa and Asia
  • HCL tech reported Q4 numbers that were better than street estimates. HDFC Bank numbers were in line with street estimates
  • TCS announced a good set of numbers (ahead our estimates)
  • Food inflation came in 8.74% for the week ended April 9 (8.28% last week)
  • Crude prices for the week increased by 2% for the week after falling on Monday (S&P downgrade of US Debt)
  • On Monday, Standard & Poors downgraded its outlook for US debt from stable to negative
  • A report by the Fed showed that industrial production increased by 0.8% in March and rose at an annual rate of 6% for the first quarter as a whole
  • National Association of Realtors report said that existing home sales rose by 3.7% to an annual rate of 5.10 million in March after falling by 8.9% to a revised 4.92 million in February
  • Commerce department showed a substantial rebound in housing starts in March where housing starts rose by 7.2% to an annual rate of 549,000 in March after falling by 18.5% to a revised 512,000 in February
  • Semiconductor giant Intel, Yahoo, United technologies, IBM Corp and AT&T declared their nos which beat street estimates and gave upbeat guidance

Week Ahead : Volatility is likely to remain high
The overall index movement in the last couple of weeks has been broadly in the range of 5700-5950 levels. A sustained break on the either side of this trading band will define the further direction for the indices in the short term. Volatility is likely to remain high as long as the index remains within this trading range. In the month of April till date, FII have net buyers to the tune of 2,863 crores while domestic funds are net sellers to the tune of 1,458 crores (provisional data).
  • The major companies declaring their earnings would be Sesa Goa, Sterlite Inds, Bank of Baroda, Maruti Suzuki, ACC, Ambuja cement, Wipro
  • Market on Monday will react to numbers of Reliance Industries which were declared on April 21, 2011
  • Nifty on Thursdays trades has managed to close near the higher band of the recent trading range
  • A strong decisive close above the 5930 levels will confirm a break-out above the trendline resistance joining the November (6338) and January (6181) highs. Such a breakout would propel the index towards higher targets of 6100-6150 levels
  • Nifty has immediate support at the 5810 levels which is the 50% retracement of the current week trading range, breaching of which the next support levels comes around the weeks low of 5695