Market Outlook for the Week: 08-03-10 TO 12-03-10
WEEKLY SUPPORT exists around levels of 5070-5000-4930 levels, with HURDLE at 5210-5280-5350 range.
Domestic bourses closed the week with positive gains witnessing strong post budget rally that was backed by data showing surge in manufacturing and service activity as well as rise in exports for third consecutive month in Jan-2010. NIFTY- futures however closed with discount of about 1.70 points to the spot. NSE Cash volumes witnessed positive improvement with broad based buying across the sector during the week. By end of the week NIFTY finally managed to breach & close above mentioned hurdle of 4960 levels with strong volumes. Technically NIFTY is now trading above all important averages however higher levels of 5200-5300 may remain important hurdle and thus after sharp up move chances of consolidation around current levels remains very high. Also with a spate of new and follow-on public offerings to flood the market over the next few months, liquidity will be a major concern. Thus for the coming week, important support to watch out for in near term are 4960-5000 levels on NIFTY. While on higher side profit booking around 5200-5300 range, cannot be ruled out. Foreign funds flow, will continue to play important role in directing course of our markets. IIP data(Expected to be robust once again) on Friday remains a crucial trigger from Domestic markets.
Market Action Snapshot:
Rally continued for the fourth straight week with both benchmark indices gaining more than 3% each. Buying was broad based with all the sectoral indices closing the week with positive gains.
NIFTY ended the week GAINING 3.38% or around +166.40 points at 5088.70 levels. SENSEX too witnessed GAINS of around 3.44% or +564.94 points to end the week at 16994.49 levels.
NIFTY MARCH Futures closed the week with DISCOUNT of around 1.70 points to the spot.
Positive trend was observed amongst sectoral indices during the week. BSE METAL remained top gainer on weekly basis for second week in row, moving up by 7.06% or 1158.74 points closing the week at 17560.26 levels.
"Average daily" volume for the "week" was observed at Rs.15120.06 cores as compared to previous week's average of Rs.12663.99 crores.
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