News - Weekly E-Magazine : Markets likely to remain choppy before earning season in COMMUNITY CENTER - Previous Week : BSE Sensex closed at 18450 down by 385 points, while the NSE Nifty closed at 5553 down ...
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04-07-2013 12:37 PM
Weekly E-Magazine : Markets likely to remain choppy before earning season
Previous Week : BSE Sensex closed at 18450 down by 385 points, while the NSE Nifty closed at 5553 down by 129.30 points Domestic equity benchmarks plummeted to fresh 2013 lows following a heavy bear assault during previous week trade. Weak global cues along with domestic political uncertainty resulted in a negative return for the benchmark indices. Nifty opened positive but fresh selling pressure during the middle of the week saw the Nifty closing deep into the red. It closed in negative in three out of the five trading session.- The 30 share BSE Sensex closed at 18450 down by 385 points or 2.05%, while the NSE Nifty closed at 5553, down by 129.30 points or 2.28%, week on week basis
- Maruti, Dr.Reddy, Cairn India, Ranbaxy and Sun Pharma were the major gainers in the index where as Bharti Airtel, HDFC, ITC, Ambuja Cement, Bajaj Auto, NMDC, TCS, Tata Motors, Axis Bank and Hero Motocorp were the key draggers amongst Nifty constituents
- The week started on the positive after the RBI rationalized investment limits for foreign investors in bonds in a bid to attract more foreign flows to plug the widening current account deficit
- On the negative side, HSBC manufacturing PMI fell to 52.0 in March, dragged down by cooling domestic and foreign demand, while infrastructure sector output slumped 2.5 percent in February from a year earlier. Later, downbeat service sector data and weak global cues amid caution ahead of central bank meetings in Japan and Europe prompted investors to book profits
Week Ahead : Q4FY13 result seasons kicks off next week Nifty on the weekly chart has formed a strong bearish candle that enforced a firm close below the 200 day SMA for the first time since late July 2012 which is currently placed at 5641 levels, signaling bearish bias in the short term. Nifty after the initial up move in the beginning of the week has dragged lower and has breached its previous lows, thus forming a lower peaks and lower trough in the daily and weekly chart.- Nifty from a medium-term perspective, the 5530-5450 area is seen as a crucial support being the confluence of following:
- The rising gap area formed in mid-September 2012 is placed between 5526 and 5447 levels
- The 50% retracement of the entire rally from June 2012 low of 4770 to January 2013 high of 6111 is placed at 5445 levels
- At around 5500, the current down move from 5971 would achieve price parity with the first down leg from January highs (6111-5663)
- Pullback attempts from current levels are likely to see the index face a stiff resistance around the bearish gap area of last Thursday (5644-5672)
- The Q4FY13 result seasons kicks off next week with the results of Infosys on April 12
- The domestic markets would be looking out for Industrial production, local car sales and imports/exports data
Overseas, markets would be looking out for MBA Mortgage applications, initial jobless claims and University of Michigan consumer confidence index in the US and industrial production data in the Eurozone
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