Previous Week : BSE Sensex closed at 18,625.34, while the NSE Nifty closed at 5664.30
Indian equity benchmarks traded listless for most part of the week. Nifty traded in a tight 80 points range oscillating between gains and losses throughout the week as earnings season pans out. Market will keep a close watch at the Reserve Bank of India (RBI) which announces Second Quarter Review of Monetary Policy - 2012-13 on Tuesday, October 30, 2012, for further directional cues in the coming week.
  • The 30 share BSE Sensex closed at 18,625.34 down by 56.97 points or 0.30%, while the NSE Nifty closed at 5664.30, down by 19.95 points or 0.30%, week on week basis
  • Larsen & Toubro, Mahindra & Mahindra, Axis Bank, and IDFC were the major gainers in the index where as Punjab National Bank, ITC, Hindustan Unilever, Reliance Industries and State Bank of India were the key draggers amongst Nifty constituents
  • Brent crude closed at $109.37/barrel down by 3.4% on a weekly basis (as on Thursday)
  • In the week from October 22-26, results of Sensex companies were broadly better than estimates. While HDFC, Hindustan Unilever & GAIL reported numbers which were in line, ICICI Bank, Mahindra & Mahindra, Sterlite Industries, Hero Moto Corp and L&T reported numbers that were better than estimates

Week Ahead : RBI Monetary Policy is the Key Event / data to watch for next week
Nifty on the weekly chart has formed another Doji candle which clearly signifies the current indecision among the market participation. The index continues to struggle for direction in the broad range of 5630-5750 levels since last three weeks. It has managed to hold above the immediate support of 5630 despite choppiness and volatility, however the pullback attempts have seldom lasted beyond a single trading session amid lack of follow through action and selling pressure at higher levels have kept the gains in check.
  • The current sideways consolidation is almost three weeks old while the rally from September 2012 lows (5215) consumed five weeks. Based on the time equality principle the corrective phase could extend for a couple of weeks going ahead
  • Further price correction will be signaled on a sustained close below 5630 which will open downsides towards 5500 region. The confluence of key technical supports placed around 5500 levels makes this a crucial support to watch out in the near term
  • For any immediate upsides to materialise the index needs show strength above the 5750 levels to regain the lost momentum and head for a re-test of the upper band of rising channel currently placed around 5850-5930 levels
  • In the coming week, Maruti Suzuki, Dr. Reddy's laboratories & Wipro are expected to announce their quarterly results
  • In the month of October (till October 25, 2012), FIIs were net buyers to the tune of 8741 crore while DIIs were net sellers to the tune of 4354 crore
  • Key data/events to watch in India would be monetary policy by the RBI and India October Market Manufacturing PMI
  • Globally, events to watch out will be-Initial jobless claims, MBA mortgage applications, ISM Manufacturing and Markit US PMI final in the US and CPI estimate, PMI manufacturing index and unemployment rate in the Eurozone

Written By Manikandan R