Previous Week : BSE Sensex closed at 19683.23, while the NSE Nifty closed at 5945.70
The Indian equity benchmarks had one of the strongest weekly performances of the recent times as the index gained almost 4% on weekly basis. The Nifty closed in green in four out of the five trading session during previous week. The index after a range bound trade in the first trading day of the week has gained from strength to strength as the week progressed to close near the weeks highs.
  • The 30 share BSE Sensex closed at 19683.23 up by 764.71 points or 4.04%, while the NSE Nifty closed at 5945.70, up by 226 points or 3.95%, week on week basis
  • Banking, IT, Capital Goods, Metals, Realty, Healthcare and Oil & Gas stocks were the major gainers in the index during previous week trade
  • After the budget last week, the domestic markets, this week, largely mirrored the global markets
  • The markets fell early as European shares, the euro and oil prices fell and as political stalemate in the US and Italy and China's plans for tighter controls on its property sector hit sentiment. However, the markets staged a sharp recovery later in line with its global peers as US markets hit a record high and the European markets hitting the highest level since the 2008 collapse
  • The gains were led by rate sensitive stocks on rate hopes of a rate cut during RBI's next monetary policy review and IT services on expectations of improving sector earnings this year, especially in the US.

Week Ahead : FIIs were net buyers to the tune of 1972 crore
Nifty on the weekly chart has formed a strong bullish Engulfing candlestick pattern which engulfed previous three weeks real bodies. Nifty during previous week bounced back taking support at the 78.6% retracement of the previous major rally from 5549 to 6111. In the process the index has closed above its short term moving average 21 and 50 days EMA which are currently placed at 5882 and 5855 levels.
  • Nifty against a nine-day fall from 5971 to 5664 has almost completely retraced the last leg of the fall in five-days, so a move above 5971 in shorter duration will indicate a positive structure. Nifty on the higher side a move above 5971 can test 6018 and 6050 in the coming week
  • The index has maintained a higher high and higher low sequence in last five sessions, Index after a strong up move in the last five sessions, has seen the intraday oscillators moving into an oversold territory. So some profit booking at higher levels can not be ruled out and intra-week correction is likely to find support in the range of 5860-5810 which is the 38.2% and 50% retracement of the last week up move and the presence of 21 days EMA around 5850 levels further provide strength to the above support area
  • In the month of March (till March 7), FIIs were net buyers to the tune of 1972 crore while DIIs were net sellers to the tune of 1717 crore
  • Key data/events to watch out for in India would be Industrial production, WPI, imports/exports data and local car sales
  • Overseas, markets would be looking out for MBA Mortgage applications, Industrial production, CPI. University of Michigan confidence index and initial jobless claims in the US and industrial production, CPI and employment data in the Eurozone.