Previous Week : BSE Sensex closed at 19784.08 up by 339.20 points , while the NSE Nifty closed at 6016.15, up by 107.30 points
The Indian equity benchmark closed the first trading week of 2013 on an upbeat note as the sentiment was boosted by US policy makers reaching an agreement to avert the imminent fiscal cliff. The benchmark indices closed at two-year highs on back of strong global cues. The Nifty started the week on a flattish note but back to back bullish gap up on Tuesday and Wednesday lead the indices scale past its psychological 6000 mark and close the week at the high point of the week.
  • The 30 share BSE Sensex closed at 19784.08 up by 339.20 points or 1.74%, while the NSE Nifty closed at 6016.15, up by 107.30 points or 1.82%, week on week basis
  • The broader market out performed the benchmark indices as the BSE mid cap and small cap indices gained 3.10% and 3.72% respectively on weekly basis
  • ONGC, BHEL, IDFC, Bajaj Auto, Maruti, BPCL, Reliance Industries, DLF, Punjab National Bank and State Bank of India were the key gainers amongst Nifty constituents
  • The markets rose sharply in the early part of the week after the U.S. averted the looming 'fiscal cliff' in a last-minute deal
  • Also, hopes of a rate cut by the RBI this month prompted the rate sensitive sectors esp. the banking sector to post strong gains
  • Aiding the sentiment was India's manufacturing activity surged to a six-month high in December, boosted by strong factory output and a spike in new orders, both of which hit their highest levels since June according to a business survey
  • Among the Sensex companies, Infosys is expected to announce its quarterly results for Q3FY13
  • Brent crude closed at $111.86/barrel rising marginally on a weekly basis (as on Thursday).

Week Ahead : FIIs were net buyers to the tune of 3170 crore
Nifty on the weekly chart has formed a sizable bull candle which closed at the high point of the week, and it carries a small lower shadow. Nifty during the week broke out of the last four week trading range (5840-5950) with two back to back bullish gaps signaling resumption of the bullish momentum after the recent consolidation.
  • For short-term perspective the recent resistance area of 5950-5935 is likely to reverse its role as a support and provide cushion to prices in case of any throwbacks from current levels
  • Following the confirmed breakout above the short-term trading range, we expect the index to sail towards 6100-6150 in the near term being the upper band of the medium term rising channel in place since June 2012
  • Momentum oscillators on the daily as well as weekly charts remain firmly poised and indicate continuance of the upward momentum in the short-term
  • In the month of January (till January 3), FIIs were net buyers to the tune of 3170 crore while DIIs were net sellers to the tune of 1730 crore
  • Key data/events in the coming week include Indian local car sales, industrial production and imports/exports data in India
  • Overseas, the markets would be looking out for initial jobless claims, MBA mortgage applications and import price index in the US and PPI data, unemployment rate and ECB interest rate decision in the Eurozone.