ICICI Sec: Week Ahead : Foreign funds have been net sellers in 4 out of last 5 trading sessions

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Previous Week : Sensex was down by 280 points
	Indian equities witnessed high volatility as Nifty traded in a range of 5440- 5178, it closed in the  red for 4 out of 5 trading sessions. Nifty faced heavy selling pressure throughout the week and hit an intra-week low of 5178 before bouncing on the last trading day of the week and closing at the 5310 level.
		On a week-on-week basis, the Sensex was down by 280 points or -
		1.5% to close at 17,728.61 levels
		The S&P CNX Nifty also closed in the red down by 85 points or 1.5%
		to close at 5310 for the week. Realty, Metals, IT Power, ADAG stocks were the major losers. Stocks such as Unitech, Reliance Communication, Reliance Capital, Reliance Infra, Hindalco, TCS, Tata Steel were under heavy selling pressure
		Telecom stocks fell sharply after sector regulator TRAI
		recommended a sharp increase in the charges for the 2G spectrum
		On the earnings front Lanco Infratech, Adani Power missed street
		estimates while Tata Motors delivered stellar numbers
		IIP growth for December came in at 1.6%
		Amongst the key economic data releases, annual food inflation
		came in at 13.07 % (it was previously at 17% - a seven week low)
	Positive US economic report from the Federal Reserve boosted investor confidence. The report said consumer credit increased by $6.1 billion in December following an upwardly revised $2.0 billion increase in November. Economists had expected credit to increase by $2.0 billion. NASDAQ reached a new three-year closing high while the Dow and the S&P 500 both reached their best closing levels in well over two years on Monday. China hikes interest rate by 25 bps. On the US economic front, jobless claims came in at their lowest level since July 2008.
Week Ahead : Foreign funds have been net sellers in 4 out of last 5 trading sessions
	Nifty has tanked almost 400 points during the last three weeks, which has resulted in bearish sentiment among investors, though late recovery on Friday looks interesting. Although  only sustained trading above the high on Friday high will open further upside in the market. Foreign funds have been net sellers in 4 out of the last 5 trading sessions. In the month of February, FIIs have net sellers to the tune of 2,791 crore while domestic funds are net buyers to the tune of 2,691 crore.
		Among the key global data to watch for in next week is US trade
		balance, Michigan consumer index, NAHB Housing market index, US retail sales, US produce price index, UK nationwide consumer confidence
		Based on the trade on Friday Nifty has taken support at the trend line
		joining the low of November 2009 and February 2010 which is placed at the 5180 level which will act as a crucial downside support for the next week, breaching below when the next support comes at 5050 level
		On the Higher side last Wednesdays high of 5340 is the immediate
		resistance sustaining above which the next resistance comes in the range of 5450-5500 levels