6th June 2011
The Indian stock market was in a tight range during last week trade.The week began on a positive note but there was selling pressure at higher levels.
Index :The BSE Sensex was up 109 points week on week basis and closed at 18376 levels where as the S&P CNX Nifty closed up marginally 40 points, or 0.7%, to close at 5516
Gainers : Hindustan Unilever, Larsen & Toubro, Reliance Capital, and Ranbaxy
Losers : Hindalco, Tata Motors, Tata Steel and Mahindra & Mahindra
Results : Oil Marketing Companies (IOC, HPCL, BPCL) showed better than expected results due to lower sharing of subsidy burden. However, ONGC, OIL India results below expectation on account higher subsidy burden
Economy : India's GDP growth in Q4 FY11 was 7.8% (lowest in last 4 quarters) mainly due to a sharp drop in manufacturing growth
For FY11, the Indian economy grew 8.5%, just below the government's 8.6% estimate, and up from 8% a year earlier
India's exports for the month of April 2011 stood at $ 23.8 billion while Imports came in at $ 32.8 billion. Trade deficit for the month of April narrowed to $ 8.9 billion ($ 11 billion last year)
Inflation: Food inflation fell marginally to 8.06% for the week ended May 21 (8.57% last week)
Inflation of fuel items, however, increased to 12.54% (12.11% last week) mainly on account of an over 32% jump in index for petrol.
Crude Oil : Nymex crude traded within a tight range of $ 100 -$102/ barrel for the week
Coming Week (6-12 June) :
Nifty has reacted from its 200 day EMA during last week trade. The swift rally since the lows of 5328 to 5600 regions has seen the short term indicators entering the overbought region. Hence any technical throw backs from current levels are likely to get cushion at lower levels around the 50%(5465) and 61.8% (5430) which are fibonacci retracement levels of the recent rise.
Important resistence zone for the Nifty is around 5600-5650
Institutions: FII have been net sellers in the month of May to the tune of 5158 crore while domestic funds are net buyers to the tune of 4093 crore
For the first two trading days in June, FIIs are net buyers to the tune of 430 crore while domestic institutions are net sellers to the tune of 273 crore.
The main data to watch out next week would be IIP numbers on Friday June 10, 2011 and Inflation figures for the week ended May 28, 2011
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