The BSE and NSE combined weekly market breadth was positive at 10221:7124. The capitalisation of the same was positive at `48,858 crore:`32,455 crore. In terms of sectoral performance, the banking and technology sectors outperformed the broader markets by a wide margin, with the mid-cap segment bringing up the rear. The NSE gained `1,65,097 crore in market capitalisation over the previous week.
Overseas investors were net buyers to the extent of `1,703.30 crore during the truncated week and that saw the rupee end the week at 46.48 levels vis-a-vis the dollar (against the previous week’s 46.64/$ levels). The US markets ended with little change over the previous week, though closing with mild gains. The UK FTSE saw a relatively stronger performance. In the Asian region, the upward charge was led by the Japanese and Hong Kong markets, followed by the Singapore and Chinese markets. The overseas cues are optimistic and the momentum remains biased towards the bulls for now.
Technically, the domestic markets are on the cusp of an upmove that needs the bulls to keep the Nifty above the 5600-5625 band as far as possible. The weekly range advocated for the Nifty between the 5625/ 5250 has more or less held as the Nifty tested the 5647 levels on the upsides.
This week is likely to witness 5750 on the upsides and 5375 on declines with the bullish pivot at the 5580 levels and the bearish pivot at the 5540 levels. After a strong upthrust in recent weeks, a mild correction this week would be along expected lines. Maintain a long bias for now.
