| The market made an upside breakout and consolidated above a key support. The Nifty closed at 5974 points for a week-on-week gain of 3.67 per cent after registering a new intraday high of 6042. |
| The Sensex was up an equivalent 3.11 per cent though it didn't register new highs. The Defty rose a disproportionate 4.36 per cent as the rupee strengthened through the week. The Nifty Junior rose even more strongly to register a 4.49 per cent gain. |
| Breadth was fairly good through the week and there was a volume expansion. However, there was a burst of profit-booking on Friday afternoon after the market opened high. The BSE 500 was up 4.49 per cent while the CNX Midcap was ahead by an amazing 6 per cent. |
| The CNX IT made a significant contribution to overall gains with a 6.3 per cent bounce. Both mutual funds and FIIs were aggregate buyers during the week though the mutuals were net sellers on a couple of sessions. |
| Outlook: If the market closes above 6000 Nifty, there would be a short-term target of 6150 and a medium term target of 6350. But trading on Friday evening suggested that there could be more profit booking at these levels. |
| Rationale: The market has almost completed a bullish saucer formation but it is testing severe resistance at the 6000 Nifty levels. On the downside, there is a lot of support available at 5850. It could oscillate between the narrow confines of 5850-6050 through much of next week. |
| Counter-view: The medium-term trend seems to have turned positive again after a brief three-week correction that saw prices pulling back till a low of 5519. The volume expansion at current levels suggests that the next upwards breakout is imminent. |
| Bulls & Bears: At the level of individual stocks, Friday's trends were a little mixed. The IT sector saw sharp recoveries across the board on the basis of the US rate-freeze which is seen as good for the rupee. Leaders like Infosys and TCS did well and so did second level IT stocks such as Polaris, Geometric, Kale Consultants, RS Software etc. |
| There was also bullish action in pharma majors such as Dr Reddy |
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