Previous Week : NTPC, Steel Authority of India, and Dr. Reddy were the major losers in the index
Key benchmark indices extended gains for second consecutive week to hit their highest level in 6 weeks as stocks rose across the globe on reports that central banks of major economies are ready to provide liquidity. Volatility continued to rule as Nifty traded wildly in a range of 5000-5150 to close near the high point of the week. Outcome of a parliamentary election in Greece, Reserve Bank of India's mid-quarter monetary policy review, progress of the monsoon rains, a two-day meeting of the Federal Open Market Committee on US interest rates and G20 summit will decide the near-term trend on the bourses.
  • The 30 share BSE Sensex closed at 16949.83 up 230.96 points or 1.4%, while the NSE Nifty shut the shop at 5139.05 up 70.70 points or 1.40% week on week basis. Cement stocks (ACC, Ambuja and Grasim), Coal India, Infosys, TCS, Hindustan Unilever and ITC were the major gainers in the index, whereas NTPC, Steel Authority of India, and Dr. Reddy were the major losers in the index
  • The WPI for May 2012 came in at 7.55% as against 7.23% for April 2012 in line with market expectations. However, upward revision of March 2012 inflation to 7.69% from 6.89% provisional was a steep hike
  • Sequentially, however, the price rise was not very sharp. Core inflation came in slightly higher at 4.86% for May 2012 but is still within the comfort zone and can act as a helpful trigger for the RBI to favour growth over inflation
  • Nymex crude closed at $83.91/ barrel decreasing 1.1% on a weekly basis (as on Thursday)

Week Ahead
Nifty on the weekly chart has formed a small bodied bullish candle with a long lower shadow suggesting support at lower levels. Nifty after a steady rise from last week's low of 4770 is now positioned at a crucial juncture ahead of key domestic and global events. In last week's trade, it has surpassed the overhead resistance trend line in place since February 2012 high.
  • The short-term bias remains positive, some profit bookings at higher levels may not be ruled out, going ahead. We expect throwbacks to find buying support at the key retracement levels of the current rise from last week's low
  • Formation of a higher bottom near the retracement supports (4960-4910) and a strong close above 5180 thereof will propel the index toward 5350 odd levels in the near term
  • In the month of June (till June 14, 2012), FIIs were net buyers to the tune of 4 crore while DIIs were the net buyers to the tune of 1347 crore
  • Key data/events to watch globally would be Greek re-elections, US Housing Market Index, FOMC Rate Decisions and Initial jobless claims. In India, data to watch would be RBI mid quarter review and monthly consumer price index.