Previous Week : BSE Sensex closed at 19242.00 down by 75.25 points, while the NSE Nifty closed at 5847.70, down by 31.90 points
Indian equity benchmarks traded in a range with high volatility during previous week as the index oscillated between gains and losses through out the week to finally close marginally negative for the week. RBI in its policy review kept the policy rates and cash reserve ratio unchanged
  • The 30 share BSE Sensex closed at 19242 down by 75.25 points or 0.38%, while the NSE Nifty closed at 5847.70, down by 31.90 points or 0.53%, week on week basis
  • Tata Steel, Hindalco, Jindal steel & power, Tata Motors and Cipla were the major gainers in the index where as Ambuja Cement, Cairn India, HDFC, JP Associates and Larsen & Toubro were the key draggers amongst Nifty constituents
  • The markets were disappointed early during the week when the RBI kept the interest rates and CRR unchanged. However, cheers were soon seen when the government cleared the decks for RBI to initiate the process to issue new banking licences and widened the window for infusion of capital into the banking sector
  • Brent crude closed at $111.50/barrel up by 3.7% on a weekly basis (as on Thursday).

Week Ahead : FIIs were net buyers to the tune of 11520 crore
Nifty on the weekly chart has formed a small bodied bear candle with a long upper shadow. The index appears to be struggling for direction as the nifty is struck into a range of 150 points as the overall mood remains cautious among global peers ahead of the US Fiscal cliff and the onset of the holiday season.
  • The index appears to be respecting the 78.6% retracement of the November 2010-December 2011 decline (6338-4531) placed at 5950 levels as is evident from the increased choppiness and volatility over the last few sessions. Only a strong close above the same will reignite bulls to make further strides towards the upper band of the rising channel currently placed near the 6080 region
  • As the overall medium-term trend remains in favour of bulls, we expect corrective price declines to find buying support around the 5750-5820 range being the confluence of the 21 days EMA, 50% retracement of the current up-leg from 5548 to 5965 and the previous high of October 2012
  • In the month of December (till December 20), FIIs were net buyers to the tune of 11520 crore while DIIs were net sellers to the tune of 8024 crore
  • Key data/events in the coming week include core industries growth data in India
  • Overseas, the markets would be looking out for initial jobless claims, Consumer confidence and Richmond Fed manufacturing index in the US