Previous Week : Sensex was up by 412.81 points for the week to settle at 15,867.73
Key benchmark indices after closing the previous year near to its yearly lows have managed to recover some of the recent losses as they managed to close the week with a gain of more than 2.5% on weekly basis. Nifty started the week on a positive note in the first two sessions of the new-year but thereafter remained rudderless and traded in a narrow 100 points range for the rest of the week in the absence of any major cues from the domestic as well as global front.
  • The Sensex was up by 412.81 points or 2.7% for the week to settle at 15,867.73 whereas the Nifty closed at 4754.10, up by 129.80 points or 2.8%
  • Tata Motors, L&T, HDFC Bank, Coal India, Ranbaxy, Cipla, Cairn India and Tata Steel were the major gainers where as Bajaj Auto, Hero Motocorp, Mahindra & Mahindra, Bharti Airtel and ACC were the major draggers in the index during last week
  • The government has allowed individual foreign investors to directly access the stock market from January 15. It was the latest step to liberalise investment norms and ease currency fall after a year of big losses in the stock and currency markets
  • India's food inflation for the week ended December 24 contracted by 3.36%(because of higher base effect) on a week-on-week basis from 0.24% for the week ended December 17 while fuel price index increased to 14.63% from 14.37%
  • Nymex crude remained flat at $101/ barrel up 2.7% on weekly basis (on Thursday) because of tensions in Persian Gulf.

Week Ahead - Key data to watch globally would be factory actual retail sales
Nifty on the weekly chart has formed a strong bullish candle and in the process has managed to close above its 20 days SMA (4709) for the first time since 8th December 2011. Immediate hurdle is placed around the 4820 levels being the 50% retracement of the most recent fall (5099-4531). Only a show of strength above the 4820 mark will see the index extending the current pullback 4880-4920 levels being the 61.8% retracement and previous bearish gap area respectively. As the overall trend remains bearish, we expect the index to resume its downward journey after retracing the recent fall.
  • The rising gap area of last Tuesday's session between 4675-4645 levels becomes an immediate technical support. In the absence of any directional triggers the index is likely to trade choppy in the range of 4675-4820 levels in the coming few sessions
  • In the month of January (January 5) FIIs have been net buyers to the tune of 682 crores while DIIs have been net sellers to the tune of 82 crores
  • Key data to watch globally would be factory actual retail sales, wholesale inventories, and Initial jobless claims
  • In India, for the next week the key data to watch would be weekly inflation and IIP data. Q3FY12 earning season will begin with Infosys and Indusind bank announcing their numbers