Indian market closed the last day of the week (Friday-03rd December, 2010) on a very flat note after witnessing choppy trade all day. The profit booking was seen after a surge of last four trading session and midcap sector was the hit most after SEBI banned the promoters of four companies for alleged price manipulation. Previously, positive local and global news, about macroeconomic front of US and affirmative action hopes from ECB, made the buying sentiments buoyant across the globe.
So, looks like the overhang of scams will continue to haunt the Indian market just as everything seemed to fall in place. Another factor that could affect the sentiment early on Monday is a weaker than expected US jobs data for November. The world's largest economy managed to add just 39,000 non-farm payrolls versus expectations of 150,000. What's worse, the unemployment rate climbed to 9.8% as against expectations of 9.6%. Still, much will hinge on how Wall Street and the European markets react to the jobs report.
FII inflow in the calendar year 2010 totaled Rs 132853.41 crore so far (till 1 December 2010).
The next major trigger for the market is the advance tax payment of corporates for the third installment, which falls due on 15 December 2010. The advance tax figures will provide a cue on Q3 December 2010 corporate earnings.
On the whole, it is expected that the market will consolidate after last week's 4% rally. Next week is very light in terms of big, market moving events. Very few important global economic data points are scheduled for next week. In India, the IIP for October will be released on Dec. 10. Since the infrastructure sector growth showed a sharp recovery in October, it is possible that the IIP data will also exhibit a similar turnaround after a dismal September. All the more reason for the market to turn choppy and rangebound before in the run up to the IIP report. A little caution, especially in the non-index counters after Friday's steep losses in the Small-Cap and Mid-Cap stocks. At the same time, the bias remains cautiously positive.
NIFTY support and resistance for the next week are:
S1/S2/S3 - 5965/5930/5870
R1/R2/R3 - 6020/6055/6115
SENSEX support and resistance for the next week are:
S1/S2/S3 - 19875/19780/19590
R1/R2/R3 - 20065/20160/20350
