Previous Week : BSE closed almost unchanged at 18,682.31, while the NSE Nifty closed at 5684.25
Indian equity benchmarks traded rudderless and oscillated between gains and losses throughout the week as earnings season pans out. An upward momentum in benchmarks till beginning of October has been lost as recent rally of US Dollar against Indian rupee proved headwind. Nifty ranged in mere 90 points for entire week ahead of expiry of October series of derivative contracts.
  • The 30 share BSE Sensex closed almost unchanged at 18,682.31 up merely by 7.13 points or 0.04%, while the NSE Nifty closed at 5684.25, up by 8 points or 0.14%, week on week basis
  • Axis Bank, ITC, Hero Motocorp, HCL Tech and Bharti Airtel were the major gainers in the index where as ACC, DLF, GAIL, Ambuja cement and Mahindra & Mahindra were the key draggers amongst Nifty constituents
  • The WPI inflation came in at 7.81% for September which was marginally higher than market expectations
  • Brent crude closed at $113.22/barrel down by 2.9% on a weekly basis (as on Thursday).

Week Ahead : FIIs were net buyers to the tune of INR 8719 crore
Weekly Candlestick pattern is a perfect DOJI which is symptomatic of indecision amongst market participants. After prior week's Bearish Engulfing candlestick pattern, DOJI for recent week is seen as a pause before any direction move takes place For past four weeks Nifty has been taking support at 5630 levels which is an immediate support for coming week. Breach of 5630 would open further down sides towards 5585-5515 levels which is 38.2% and 50% retracement of September rally (5215-5815)
  • On the higher side nifty has failed to move beyond 5750 levels over past seven sessions indicating consistent selling pressure in 5730-5750 zone
  • From short term perspective a sustainability above 5750 would open upsides towards 5870-5900 levels which is seen as major resistance basis 78.6% retracement of 2011 decline
  • In the week from October 15-19, Axis Bank, HDFC Bank, Ambuja Cements and Reliance Industries reported their numbers which were in line with expectations. While ITC reported numbers that were better than expectations, ACC numbers fell below the expectations
  • In the month of October (till October 18, 2012), FIIs were net buyers to the tune of 8719 crore while DIIs were net sellers to the tune of 4064 crore
  • Key data/events to watch globally would be FOMC rate decision, GDP data, Initial jobless claims MBA mortgage applications in the US and PMI index and Industrial production in the Euro.