Previous Week : BSE Sensex closed at 20103.53 up by 0.32%, while the NSE Nifty closed at 6074.65, up by 0.17%
The Indian equity benchmark traded with high volatility during previous week trade as alternate bouts of buying and selling activity kept traders on their toes. Nifty traded in a 100 points range oscillating between gains and losses during the week to finally closing with marginal gains. The broader markets tanked sharply on back of heavy selling pressure with the BSE midcap and small cap ending lower by ~2.7% and 3.10% respectively on weekly basis.
  • The 30 share BSE Sensex closed at 20103.53 up by 64.50 points or 0.32%, while the NSE Nifty closed at 6074.65, up by 10.25 points or 0.17%, week on week basis
  • Bharti Airtel, ITC, Kotak Mahindra Bank, L&T and Maruti were the major gainers in the index where as Coal India, GAIL, Hindalco, Hindustan Unilever, Ranbaxy, NTPC, cairn India and Tata Motors were the key draggers amongst Nifty constituents
  • The market sentiment during the week was driven by a slew of corporate earnings which were mixed. The markets started the week on a positive note carrying the positive sentiment created by results of RIL and ITC during the last week
  • Later, disappointing volumes growth by HUL and slow production ramp up in a key block of Cairn India created pessimism in the markets
  • A tariff hike by telecom operators created an uptrend in the markets which was reversed later by a profit warning by Tata Motors at its key Jaguar land rover unit
  • Among the Sensex companies, Maruti Suzuki surprised the street with better than expected results. While L&T, NTPC and HDFC reported numbers in line, Hindustan Unilever numbers fell below estimates

Week Ahead
Nifty on the weekly chart has formed a small bodied bearish candle with a long lower shadow, resembling a bearish Hanging man candlestick pattern. It signifies a trend reversal if the nifty closes below the low of the candle in the coming week. It maintains a higher high higher low despite choppy and range bound movement. Weakness below the Hanging man candle low will lead to intensified profit bookings. The deteriorating market breadth in the last couple of weeks is an additional signal of waning upward momentum apart from the negative divergence already exhibited by the 14 period RSI on the daily chart.
  • The choppy up move since mid-December 2012 appears to be taking the form of a Rising Wedge as marked by two converging trend lines
  • The lower band of the rising wedge is placed near 5990, which also coincides with the value of the 21 day EMA and the immediate swing low. A break below the same would signal a short-term reversal leading to downsides towards the 5880-5830 region
  • The index has witnessed consistent selling pressure near the upper boundary of the rising wedge over the last couple of weeks
  • Pullback attempts in the coming session are likely to see the index face stiff resistance around 6100. Only a strong close above the same with a significant improvement in the overall market breadth will indicate bulls regaining strength for a further upward journey towards the 6200-6250 regions
  • In the month of January (till January 24), FIIs were net buyers to the tune of16275 crore while DIIs were net sellers to the tune of 13447 crore
  • Among the Sensex companies, Sterlite Industries, Bharti Airtel and BHEL are expected to announce their quarterly results in the coming week
  • Key data/events in the coming week would be the interest rate decision by the RBI in India
  • Overseas markets would be looking out for GDP data, initial jobless claims, MBA mortgage applications and Universe of Michigan confidence index in the US unemployment rate in the Eurozone