ICICI Sec: Week Ahead : Nifty has crucial support in the range of 5650-5605

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Previous Week : Annual food inflation rose by 18%
	Indian equities witnessed heavy selling pressure through out the weak which even intensified on the last trading day of the week and closed down by more than 4% for the week. Indian Markets was highly volatile during the week trading choppily. Nifty was trading in a range of almost 200 points for the week.
		On a week-on-week basis, the Sensex was down by 854 points or
		4.3%, to close at 18860 levels
		The S&P CNX Nifty also closed in the red by 250 points, or 4.2%, to
		close at 5654 for the week. Banking, Power, Capital goods stocks were the major losers, with index heavyweight State Bank, SAIL, Axis Bank, Reliance and Tata Motors witnessed heavy selling pressure
		On the domestic front the economic news flow was mixed
		The IIP data was 2.7% (below expectations) while food inflation was
		~16 % (from 20% previous week). However, the December 2010 inflation numbers were revised upwards to 8.43%
		Infosys , HDFC delivered their Q3 FY11 nos more or less in line with
		street expectations while SAIL disappointed the street
		Steel makers have raised prices by 4-5 % on account of increase in
		raw material costs
		Amongst the key economic data releases, annual food inflation rose
		by 18% while the head line inflation rose 20.2%
		Although US employment increased by less than expected in
		December 2010, revisions to the data from the past few months reflected a net increase of 70,000 jobs
		Portugal bond sale was successful confirmation from the US
		Federal Reserve that economic recovery was under way along with improvement in the job market
		However, on Thursday, the Labour Department released a report
		showing that initial jobless claims rose to 445,000 in the week ended January 8, 2011
Week Ahead : Nifty has crucial support in the range of 5650-5605
	Nifty has tanked almost 500 points during last two weeks, which has resulted bearish sentiment among investors. Foreign funds have been net sellers since last 5 trading sessions, while domestic funds are net buyers.
		Market will keep a close watch at the Q3 results starting with index
		heavy weights TCS, AXIS Bank, L&T followed by GAIL, BHEL, PNB, SBI
		Among the key global data to watch for is China GDP, US initial job
		claims, US existing home sales
		Nifty has crucial support in the range of 5650-5605 for the week
		breaching which the index can test 5520 levels
		On the higher side, 5830 and 5904 are strong resistance levels for
		the week
	Sincerely,
	ICICIdirect.com