Week gone by - Market Quote - Anita Gandhi, Whole Time Director at Arihant Capital Markets.

During the week, benchmark Nifty and Sexsex close below 10,700 levels and 35,000 levels, where Bank Nifty gained 2.54%.

Currently, market is richly valued at price-to-earnings ratio of 26.36x. However, recovery in economic scenario and commodity prices are tailwinds for corporate earnings growth.

The rising crude oil price is one of the biggest risks for Indian economy, since we import 80% of oil to meet domestic demand. The crude oil traded above $70/barrel this week.

On macro front, Automobile sales data for April, by SIAM and FDI inflow data for March, by RBI will be announced on May 07-11. Index of Industrial Production data for March will be announced on May 11. Voting for the Karnataka State Assembly Elections will be held on May 12 and the votes will be counted on May 15.

On the global front, Japanese Monetary Policy Meeting Minutes and European Retail PMI data will be announced on Monday, May 07. Chinese Trade Balance data will be announced on Tuesday, May 08. US PPI, US Core PPI and US Crude Oil Inventories data will be announced on Wednesday, May 09. Japanese Current Account, Chinese CPI & PPI, UK Manufacturing Production, BOE Monetary Policy, US CPI and US Unemployment Claims data will be announced on Thursday, May 10. US Prelim UoM Consumer Sentiment and US Prelim UoM Inflation Expectations data will be announced on Friday, May 11.

The initial public offering (IPO) of Non-Banking Finance Company (NBFC), IndoStar Capital Finance Limited will open its IPO on May 09 and close on May 11, price band at Rs 570-572 per share.

Major companies which will announce Jan-Mar quarter earnings this week include ICICI Bank, Tata Chemicals, Godrej Consumer Products, Eicher Motors, Federal Bank, Oriental Bank, Adani Enterprises, Apollo Tyres, Asian Paints, Tata Communications, Titan, Ujjivan Financial Services, Union Bank of India, Zee Entertainment, Allahabad Bank, Canara Bank and Havells India.

Technical Outlook: The current price action on the weekly and the daily chart suggests that a correction or a consolidation at current level cannot be ruled out.

At present Nifty has resistance at 10712 - 10765 - 10828 levels whereas on the downside it has support at 10524 - 10470 - 10408 levels.

In coming week if nifty trades and close above 10659 level then it is likely to test 10712 - 10765 - 10828 levels. However, if nifty trades and close below 10577 level then it can test 10524 - 10470 - 10408 levels.

Broadly, we are of the opinion that the weekly trend remains up but for current week 10765 is strong resistance. If nifty is unable to crosses the mentioned level then it is likely to test 10500 where some buying may emerge. Hence cautious approach at current level should be adopted".

Source : Equity Bulls

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