Previous Week : Sensex was up by 1151.40 points for the week to settle at 16,846.83
Indian equity benchmarks hit two-week highs as world's six major central banks moved to come together to tame liquidity crunch for European banks by providing cheaper dollar funding. Nifty started the week with a gap up action and gained from strength to strength as the week progressed and closed the week moving above the psychological 5,000 mark. Renewed buying by foreign funds in last three days supported the positive movement.
  • The Sensex was up by 1151.40 points or 7.30% for the week to settle at 16,846.83 whereas the Nifty closed at 5050.15, up by 340.10 points or 7.20%
  • All the Nifty 50 stocks closed in green during last week, with banking, metals, cement, oil & gas, auto and IT stocks propelled the rally
  • Prime Minister Manmohan Singh failed to break an impasse with opposition parties and his own allies demanding a rollback on FDI hike in retail sector
  • India's GDP for Q2 FY12 grew at 6.9% (Bloomberg est: 6.8%). Core sector growth for the month of October dropped to a six year low of 0.1%. The core sector has expanded 7.2% last year (October 2010)
  • India's food inflation for the week ended November 19 declined to 8%on a week-on-week basis from 9.01% for the week ended November 12 while fuel price index increased to 15.53% (15.49% last week)
  • Nymex crude climbed to $100/ barrel on weekly basis (up 3.6% on Thursday)
  • World's leading central banks announced a big coordinated intervention to lower swap rates. In other words, the move will make banks all around the world to borrow dollars without many hurdles

Week Ahead - Index may consolidate its gains in next week
The Bulls were back after a while and managed to push index above 5000 mark on closing basis. Nifty produced strongest performance after a month's gap snapping four week's losing streak. Week started on a buoyant note and after couple of day's sideways action index rallied on back of positive global cues.
  • Nifty already has retraced November fall by 50% (5020) and closed above its 50 DMA (5020) levels on Friday
  • Going forward sustainability above 5000 mark would trigger further up move towards next resistance of 5110-5150 levels which is 61.8% retracement of the November fall (5400-4639). Short term bias would remain positive as long as Nifty sustains above 4850 levels which is value of rising gap of Thursday (4851-4916) levels
  • Index may consolidate its gains during coming truncated week before making further headways
  • Foreign institutional investors (FIIs) bought shares worth 687.26 crore on Thursday, as per the provisional data from the stock exchanges. FIIs had bought shares worth 34.12 crore on Wednesday, November 30, 2011
  • Key data to watch globally would be ECB Interest rate decision, US intial jobless claims, MBA mortgage applications, Factory orders, and Wholesale inventories
  • In India, next week the key data to watch would be weekly inflation