Market outlook for next week

Hello,

The week gone by saw the main indices trading in a narrow range after two weeks of intense selling. The Sensex/Nifty traded within the 18,779-19,167/5624-5748 levels to finally end with W-o-W gains of 0.79%/0.74%. The 200 day Exponential Moving Average at 18829/5648 provided support to the Sensex/Nifty. Market breadth too did not reflect any strong directional bias as three out of the five trading sessions of the week witnessed a positive market breadth.

Key Sectoral Movements

Most of the sectors ended in the positive. The top gainers were Bankex, IT, Metals and Teck, which rose by 4.1%, 2.9%, 2.2% and 2% respectively. the top losers were Oil & Gas, Capital Goods, Realty and MFCG, which lost 2.3%, 2%, 1.3% and 1.2% respectively.

Outlook next week

With the range bound action seen this week, markets seem to be adopting a wait and watch approach ahead of a lot of key results and events.Reliance Industries Q3FY11 results are coming out today evening, SBI quarterly earnings tomorrow, ICICI Bank numbers on Monday, RBI monetary policy on January 25 and derivative expiry for the month of January next Thursday. Traders will need to watch if the recent Nifty lows of 5624 hold, else the markets could trend lower. On the upside, a move above immediate resistances of 5747 could see a breakout of the current narrow trading range and further upsides.

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Warm Regards,
Stock Market News Team

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