Previous Week : BSE Sensex closed at 17,429.98 points, while the NSE Nifty closed at 5278.90
Key benchmark indices scaled 10-week highs as euro-zone debt worries eased after European leaders agreed on a growth and bank recapitalization plan for Europe which is designed to alleviate the worst of the current debt crisis gripping euro-zone. The Nifty traded in a narrow range of 5100-5190 with high volatility for the first four days of the week, but tracking the positive development in the EU Summit the index opened gap up on last trading day of the week and moved from strength to strength, as the day progressed to close at the high point of the week higher by more than 2.5% for the week.
  • The 30 share BSE Sensex closed at 17,429.98 up 457.83 points or 2.69%, while the NSE Nifty shut the shop at 5278.90 up 132.85 points or 2.58% week on week basis
  • Tata Power, NTPC, Hero Motocorp, L&T, Grasim, Dr Reddy, BHEL, Tata Steel, Reliance, Jindal Steel & Power and Maruti were the major gainers in the index
  • In a bid to check rupee free falling against the US dollar, the Reserve Bank of India (RBI) on Monday hiked the limit of external commercial borrowing (ECB) by $10 billion
  • Moreover, the regulator also increased the limit of overseas investment in government bonds by $5 billion to $20 billion. Along with the hike in investment limit, RBI also allowed some long term investors including sovereign wealth funds (SWFs), multilateral agencies, endowment funds, insurance funds, pension funds and foreign central banks to invest in government bonds for entire limit of $20 billion
  • In other development the DERC hiked power tariff in Delhi by ~ 21% helping the distribution companies Tata power and Reliance Infrastructure to plug the potential revenue gap
  • Nymex crude closed at $77.69/barrel decreasing 3% on a weekly basis (as on Thursday)

Week Ahead: Key immediate support is identified around 5160-5200 levels
Nifty on the weekly chart has formed a strong bodied bullish candle with a small lower shadow which closed near the high point of the week suggesting strength and positive momentum to continue in the coming week. In the weekly time frame the index has continue to form a higher highs and higher lows.
  • The Nifty on the daily chart has given a range breakout above 5200 levels of Friday's trade with a bullish gap up action the bias for the coming week remain positive above the gap up area of (5160-5190), and can test previous high of 5380-5400 in the coming week
  • Meanwhile, key immediate support is identified around 5160-5200 levels, the previous resistance is likely to reverse its role and act as support in the short term
  • In the month of June (till June 28, 2012), FIIs were net sellers to the tune of 510 crore while DIIs were the net buyers to the tune of 1424 crore
  • Key data/events to watch globally would be Initial jobless claims, factory orders, MBA mortgage applications and ECB interest rates
  • For India key data point to watch would be exports and imports for the month of May