Comment

The markets ended the week with gains, the fifth consecu-
tive higher close, which is a positive indicator. The benchmark indices gained about 1% at close. The traded volumes were higher as compared to the previous week.

The market breadth was negative as the weekly BSE and NSE combined advance-decline ratio was 8642:12415. The capitalisation of the breadth on a commensurate was negative as the combined figures were Rs 38,657 crore: Rs 51,324 crore.

The capitalisation of the Nifty was lower by Rs 37,397 crore on a week-on-week basis. The technology stocks were market outperformers as per my expectations, based on
the strength in the Nasdaq. Mid-cap stocks lost momentum as retail buyingsupport eased off.

The overseas players were net buyers to the extent of
Rs 4,894.80 crore during the week. That saw the rupee close at the 45.43 levels vis-a-vis the dollar (from the previous week’s 45.61/$ levels).

The Nasdaq again managed to out-perform the DJIA and the UK FTSE 100 outperformed the US indices on balance. That suggests higher relative strength in the domestic technology stocks compared with other sectors. In the Asian region, Japan and Singapore outperformed other markets.

The technical outlook for the domestic markets remains that of optimism as long as the higher tops and bottoms formation remains in force. The weekly range advocated between the 5250 / 4825 has held as the Nifty traded within a narrow band.

This week is likely to witness a range of 5200 on advances and 5050 on declines. Beyond these parameters, there is a possibility of an extension in the move. The bullish pivot during the week will be at the 5140 levels and the bearish pivot at the 5110 levels. Being close to the end of the fiscal year, retail buying momentum is expected to be limited.