Week Ahead : Nifty has crucial support at 5850 level:: ICICI Securities

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Previous Week : Heavy selling pressure on the last trading day
	Indian equities witnessed heavy selling pressure on the last trading day of the week and closed more than 3.5% for the week. It closed in red for all the five trading days for the week.
	On a week-on-week basis, the Sensex was down by 818 points or 3.90%, to close at 19691 levels. The S&P CNX Nifty also closed in the red by 253 points or 3.7% to close at 5904 for the week. Banking, Auto, Capital goods, Cement stocks were the major losers, with index heavyweights like State Bank, L&T and Tata Motors witnessed heavy selling pressure.
		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%
		The Institute for Supply Management stated that its index of activity in
		the manufacturing sector rose to 57 in December from 56.6 in November, with a reading above 50 indicating growth in the sector
		Additionally, the Commerce department reported that total
		construction spending increased by 0.4% in November
		The Commerce department reported that factory orders rose by
		0.7%
Week Ahead : Nifty has crucial support at 5850 level
	The market sentiment was weak as data showing a surge in food inflation in late December 2010 rekindled fears of interest rate hike by the Reserve Bank of India (RBI). Nifty has crucial support at 5850 from the upper band of the channel holding on to which it can see some pull back and test 6050-6100 levels on the upside. Failure to sustain above 5850 can test November 2010 lows of 5700 levels.
		Foreign funds have bought shares worth a net 432.81 crore in the
		first few trading sessions this month, as per data from the stock exchanges
		Domestic funds have offloaded shares worth a net 1,055.37 crore
		in the first few trading sessions this month, as per data from the stock exchanges
		Market will keep a close watch at the Q3 results which will start with
		the IT and steel stocks. Heavyweights Infosys and SAIL kick start the Q3 FY11 earnings season on January 13th followed by HDFC (January 14)
		Among the key global data to watch for is UK - BoE interest
		decision, EMU - ECB rate decision and Germany consumer price index