Previous Week : BSE Sensex closed at 17,380.75 points, while the NSE Nifty closed at 5258.50
Benchmark indices snapped a four weeks winning streak and closed the week deep in the red. The Nifty remained under relentless selling pressure throughout the week to settle below the 5300 mark, its lowest closing since August 6, 2012. India's quarterly GDP grew 5.5 percent languished near its slowest in three years in the quarter that ended in June.
  • The 30 share BSE Sensex closed at 17,380.75 down by 402.46 points or 2.26%, while the NSE Nifty closed at 5258.50 down by 128.20 points or 2.38%, week on week basis
  • Almost all the sectorial indices closed in red with Metals, Capital Goods, Auto, Realty, Infrastructure and Banking stocks were major draggers in the index during previous week trade
  • GDP data for Q1FY13 came in 5.5 % versus consensus estimates: 5.3%
  • Nymex crude closed at $94.62/barrel declining 1.6% on a weekly basis (as on Thursday).

Week Ahead : Export import numbers for the month of July is the key event to watch in India
The Nifty on the weekly chart has formed one of the strongest Bear candle of the recent times, in the process it has also closed below the 20 day moving average placed at 5330 levels. The Index on expected lines after breaching the previous swing low (5340) has tested the rising gap area of 6th August as mentioned in our last edition. Nifty is currently trading near the crucial technical support marked by the 50 day moving average (5255), trend line joining February 2012 and July 2012 highs and rising gap area of August 6, (5215-5260).
  • Short-term stochastic has also approached oversold readings for the first time in a month along with oversold readings on the RSI of the hourly chart
  • This may trigger an attempt of pullback in prices from the support zone of 5260-5220
  • However, for a reversal of the down trend to materialize, the index needs to post a comfortable close above 5330-5350 levels. In such a scenario index moving above 5350 can test the major resistance zone of 5450-5470 levels
  • On the lower side a sustained breach of the major support level of 5200 can jeopardize the current up trend and can see the Nifty testing the July 2012 low of 5030 levels
  • In the month of August (till August 30, 2012), FIIs were net buyers to the tune of 8216 crore while DIIs were net sellers to the tune of 4161 crore
  • Key data/events to watch globally would be US MBA Mortgage applications, construction spending (MoM), Initial Jobless claims
  • In India the key event to watch out would be Export import numbers for the month of July