Previous Week : BSE Sensex closed at 18,762.74, while NSE Nifty closed at 5703.30
Indian equity benchmarks extended gains for fourth consecutive week as Nifty closed above its psychological 5700 mark for the first time since July 26, 2011. The index traded choppy in a narrow range for the first four trading session during previous week. Strong buying in last trading day of the week saw the index closing the week in green. Foreign institutional investors (FIIs) made heavy purchases of Indian equities. In the month of September (till September 27, 2012), FIIs were net buyers to the tune of19577 crore.
  • The 30 share BSE Sensex closed flat at 18,762.74 up by 9.90 points or 0.1%, while NSE Nifty closed at 5703.30, up by 12.12 points or 0.2%, week on week basis
  • ACC, BHEL, Cipla, ITC, and Grasim were the major gainers in the index where as Bharti Airtel, Cairn India, Sesa Goa, ONGC, Tata Steel and Coal India were the key draggers amongst Nifty constituents
  • Eight core industries' output grew by 2.1 per cent in August, lower than the 3.8 per cent growth registered in the same month last year
  • The growth moderation in August 2012 has been attributed to the negative growth in natural gas, cement, fertilisers and crude oil besides decline in the growth of steel and electricity production
  • Brent crude closed at $113.36/barrel gaining 0.9% on a weekly basis (as on Thursday)

Week Ahead : DIIs were net sellers to the tune of INR 8473 crore
The Nifty on the weekly chart has formed a Doji candlestick pattern signifying some signs of pause in the intermediate uptrend as bulls take a breather after a rapid advance over the previous three weeks, which has seen the index achieved price parity with the July-August up-move. The overall short term trend in the index remains up as the Nifty continued to form higher peaks and higher trough in the weekly chart.
  • The intra-day and daily charts are reading overbought levels on the short term oscillators so some consolidation is likely in the coming week which will lead to another leg up for prices in the short-term
  • Previous week low of 5638 will act as immediate support in case of any healthy correction a breach of the above support level will see the index testing major short term support at 5525-5460 area being the upper band of the recent rising gap and 50% retracement of current up move (5215-5735) placed around 5460
  • On the higher side nifty has immediate resistance from the rising channel in place since June 2012 lows (4770) which projects strong resistance for the current up move around 5775 levels in the coming week
  • A sustain closing above the resistance level will see the index testing 5900-5950 levels in the short term
  • In the month of September (till September 27, 2012), FIIs were net buyers to the tune of 19577 crore while DIIs were net sellers to the tune of 8473 crore
  • Key data/events to watch globally would be factory orders, unemployment rate and MBA Mortgage applications in the US. In India, key data to watch out would be Export import data for the month of August