Previous Week : Sensex closed up by 95 points to close at 18858
The Indian market after the previous two weeks of splendid rally took a breather during last week as the benchmark indices traded in a range and closed almost flat on a weekly basis. The Nifty traded in a tight range for the first three days of the week. It closed with smart gains of almost 2% in Thursday's trade only to give up all its gain on the last trading day of the week.
  • The Sensex on a weekly basis closed up by 95 points or 0.5%, to close at 18858.04 levels whereas the Nifty closed higher by 33 points, or 0.6%, to close at 5660.65
  • Bharti Airtel, Tata Motors, Ranbaxy and DLF Limited were the major movers during last weeks trade whereas Bhel, Sterlite Industries and Ambuja Cement were the major draggers during last week's trade
  • India's trade deficit in May widened by around 49% YoY to $14.9 billion as imports rose 54.1% to $40.9 billion, driven by a 71% jump in non-oil products totalling $30.75 billion while exports grew 56.9% from a year earlier to $25.9 billion
  • Cement dispatches remained subdued in June and grew by ~3% YoY during the period as against ~10% long-term growth in the last five years
  • A slowdown in construction activities, both in infrastructure and housing segments, along with the onset of the monsoon season, dented demand for the commodity
  • India's food inflation for the week ended June 25 slowed to 7.61% on a week-on-week basis lowest in seven weeks (7.78% for the week ended June 18) while the fuel price index declined to 12.67% (12.98% last week)
  • The week witnessed mixed economic data from the US. Construction spending dropped higher-than-expected in May and there was a downward revision to Reuters and the University of Michigan's consumer sentiment index for June. According to a report, US factory orders rose by 0.8% in May following a revised 0.9% decrease in April

Week Ahead : Key data to watch next week would be May IIP numbers
On the weekly chart, the Nifty has formed a Doji candlestick pattern, suggesting a sign of indecision. Only a move above the current week's high of 5740 levels can see further upside in the index.
  • The Nifty as expected in the last report traded in a tight range while the nine months long downward sloping supply line along with the 200 Days SMA will continue to act as a stiff resistance in the coming week, which are present in the range of 5720-5740
  • Only if a closing above this range happens will the market see further upside and test 5900 in the medium term
  • On the downside, crucial support comes in a range of 5550-5610 levels where the Nifty has multiple support in the form of last week low (5610) and also a gap up area of June 29, 2011 (5558-5566)
  • In July, FIIs were net buyers to the tune of 3646 crore (net buyers since last five trading session) while domestic institutions were net sellers to the tune of 1964 crore (provisional data)
  • Among key data globally would be US producer price index, US retail sales, US initial jobless claims, US continuing jobless claims and US business inventories
  • Among the key data to watch next week would be May IIP numbers, weekly inflation and Quarter 1 earnings for Infosys on (Tuesday) followed by TCS on (Thursday)