Previous Week : Sensex was up by 412.81 points for the week to settle at 15,867.73
Key benchmark indices continued with its positive movement for second week in a row. The benchmarks got a further shot in the arm after ratings agency Moody’s Investor Service upgraded India's short term ceiling on foreign currency bank deposits to P-3 from NP. Nifty started the week on a flat note but on Tuesday's trade it finally managed to conquer the immediate hurdle of 4800 after struggling below the same for the past few weeks as buying across the board lifted the index to a four-week high. The broader market outperformed as the BSE Midcap and Small cap indices closed with weekly gains of 5.4% and 7.1% respectively
  • The Sensex was up by 286.89 points or 1.8% for the week to settle at 16,154.62 whereas the Nifty closed at 4866.00, up by 111.90 points or 2.5%
  • Metals, Banking, Capital goods and Oil & Gas stocks were the major gainers where as IT stocks were the major draggers in the index during last week trade
  • Infosys reported its Q3FY12 earning ahead of our estimates. Sequentially, US dollar revenues grew 3.4% - led by volume growth of 3.1%
  • Rupee revenues grew 14.8% QoQ helped primarily by the depreciating rupee. However, the company gave a muted Q4 FY12 guidance
  • HDFC results were slightly disappointing on the bottom line front but credit growth remained strong (21%) on YoY basis
  • IIP for the month of November came in at 5.9% (v/s Bloomberg consensus of 2.1%) while IIP data for the month of October was revised to -4.7% from -5.1%
  • Nymex crude decline to $99.1/ barrel down 2.5% on weekly basis (on Thursday)
  • ECB president Mario Draghi stated that economic performance in the euro zone will remain dampened due to heightened uncertainty
  • ECB left its key refinance rate unchanged at a historic low of 1%. On Thursday, Spain and Italy successfully conducted bond auctions of EUR 10 billion and EUR 12 billion respectively at lower yields

Week Ahead - Nifty is expected to face strong supply pressure
Nifty on the weekly chart has formed a sizable bullish candle which surpassed all the swing highs of the past three weeks. In the process has managed to close above its 50 days EMA (4840) for the first time since December 7, 2011. The Index after Tuesday's strong rally has witnessed increased volatility as it touched the immediate resistance of 4880 being the 61.8% retracement of the December 2011 fall (5099-4531).
  • As the key overhead resistances are in place at the 4880-4950 range, the Nifty is expected to face strong supply pressure around those critical resistance levels
  • Meanwhile, Tuesday's rising gap area placed between 4768 and 4758 will act as an immediate major support in the coming week. Trading is expected to remain choppy and volatile as long as the index remains in the 4750-4950 band
  • In the month of January (January 12) FIIs have been net buyers to the tune of 1890 crores while DIIs have been net sellers to the tune of 1552 crores
  • Key data to watch globally would be US MBA mortgage applications, Industrial Production, Consumer Price, Existing home sales
  • In India, for the next week the key data to watch would be weekly inflation and monthly WPI. The key result to watch out next would IT majors TCS, HCL Tech, Reliance, Jindal Steel and Power, HDFC Bank, Axis Bank, ITC and Asian Paints