Previous Week : Sensex gained 66.85 points for the week to settle at 16933.83
Benchmark Indices traded choppy with high volatility during last week trade and has closed the week on a flat note on weekly basis. Nifty started the week with a gap down action below 5000 levels but has managed to hold on to the 4900 support despite all the volatility. Nifty bounced back during the mid of the week and tested the short term resistance area of 5150 on Friday's trade.
  • The Sensex gained 66.85 points or 0.4% for the week to settle at 16933.83 whereas the Nifty ended up 24.80 points or 0.5% at 5084.25 levels
  • Tata Motors, Infosys, NTPC, ONGC and Hindustan unilever were the major gainers during last week where as L&T, BHEL, Tata Steel and Bharti Airtel were the major draggers during last week trade
  • RBI in its monetary policy review hiked repo rate by 25 bps (8.25%) leading to reverse repo increase by 25 bps (7.25%). CRR remains unchanged at 6%
  • IIP nos for the month of July came in at 3.3% (consensus: 6.2%) v/s 8.3% (in month of June). Inflation for the month of August 2011 came in at 9.78% v/s 9.2% in the month of July
  • India's food inflation for the week ended September 3 declined to 9.47% on a week-on-week basis from 9.55% for the week ended August 27 while the fuel price index increased to 13.01% (last week: 12.55%)
  • Nymex crude increased 2.5% on a weekly basis to close at $89.43 /barrel (on Thursday)
  • The week witnessed weak economic data from the US. The U.S. poverty rate rose to the highest level in almost two decades
  • Data released by the Census Bureau showed the proportion of people living in poverty climbed to 15.1 percent last year from 14.3 percent in 2009, and median household income declined by 2.3 percent

Week Ahead : Key data to watch globally would be US building permits
Nifty during last week trade has traded mostly in the previous week range and has tested the critical supply area of 5150-5200, where it has strong resistance from the falling gap area of 5230-5323 as the index had breached the 21 month old support trend line with such a huge gap, the trendline support will now reverse its role as a resistance in the short term.
  • On the lower side key support levels to watch will be 4910 as the index during last week correction has formed a higher bottom around that area
  • A breach of the support level on the down side will signal caution and can test the recent lows of 4720 in the short term
  • In the month of September till date (September 15, 2011) FIIs have bought shares worth 255 crores while DII were net sellers to the tune of 507 crores
  • Key data to watch globally would be US building permits, US housing starts, US existing home sales, US MBA mortgage applications
  • In India the key data to watch next week would be weekly inflation