Previous Week : BSE Sensex closed at 17,213.70, while the NSE Nifty closed at 5227.25
Key benchmark indices snapped its fifth consecutive weekly gain as the indices closed more than 1.5% down on weekly basis. Nifty performance during the previous week can be divided into two halves; during the first part the index traded higher and tested the resistance area of 5350 and during the second half it gave up all its gains and closed near the low point of the week. A dismal set of quarterly numbers from IT bellwether Infosys dampened sentiments. Even higher than expected IIP data failed to cheer the Street.
  • The 30 share BSE Sensex closed at 17,213.70 down by 307.42 points or 1.75%, while the NSE Nifty closed at 5227.25 down by 89.70 points or 1.69% week on week basis
  • Infosys Technology, Wipro, Bharti Airtel, Reliance Industries, Tata Steel, Jindal Steel & Power and Sterlite Industries were the major draggers in the index
  • Infosys results were below our and street estimates while TCS numbers beat the street estimates. HDFC and HDFC Bank delivered in line set of numbers. IIP for the month of May came in 2.4% (Consensus 1.1%)
  • Nymex crude closed at $86.08/barrel increasing 1.9% on a weekly basis (as on Thursday).

Week Ahead : FIIs were net buyers to the tune of 3365 crore
Nifty on the weekly chart has formed a bearish candle with a long upper shadow, suggesting profit booking at higher levels as the whole up move since June lows (4770) has been more or less a one sided affair as corrective declines have been shallow and have not lasted for more than a couple of trading sessions. In the weekly time frame the index has broken its higher highs and higher lows formation and has formed a lower lows on the weekly chart. The falling gap area of last Thursday's session between 5300 and 5261 will become an immediate hurdle for the bulls as the index has reacted after testing the previous Bearish Island Reversal gap area of 5350-5370 which ! is the major resistance as specified in the earlier editions.
  • In the short-term, the index is expected to head to fill the recent rising gap area placed between 5190 and 5160. The presence of the 200 day EMA at 5160 and the recent break-out area at 5150 makes the 5150-5180 area a key technical support in the short-term
  • In the month of July (till July 12, 2012), FIIs were net buyers to the tune of 3365 crore while DIIs were the net sellers to the tune of 2267 crore
  • Key data/events to watch globally would be MBA Mortgage Applications, Retail Sales, Initial Jobless claims and Monthly wholesale inventories
  • Key Indian data-Monthly inflation. Key results to watch out next week would be Axis Bank, Bajaj Auto, Hero Motocorp, Dr Reddy, and Hindustan Zinc