Both Nifty and the Sensex lost more than 3% each during the week ended May 21.

The overall reaction of the stock market was weak because of fears that the European debt disaster could upset the economic recovery throughout the world.

But, positive earnings surprise from engineering firm L&T and the administration declaration of an increase in price of APM gas to $4.2 per mbtu strengthenthe the overall outlook of the market.

The week started strongly with a jump of more than 500 points on the back of optimistic worldwide signals.

Indian market reactions remained upbeat on the $1 trillion rescue package from the EU to bailout European debt trap nations. But, the stock index dropped on conjecture that the administration would lift up borrowing costs to control inflation, slowing growth in the world's third-biggest financial system.

In addition, the IIP figures that was lower than expectation stood at 13.5% for March dragged index lower.

The Sensex closed the day on a weak note after shedding 58.16 points at 16,440.56 on Tuesday.

The top losers of the day were realty, IT and teck stocks, whereas metal, PSU, metal and oil & gas supported the market to some extent.

After positive opening with at 16,552.43, Sensex lost some of its gains and was trading off day’s high of 16,677.53 owing to profit booking witnessed at upper levels in early trade. Afterward, it lost all its strength and fell into the negative terrain. At last, it ended the day on a low note.    

BSE Midcap and Smallcap index declined 0.43 per cent and 0.38 per cent respectively.

After opening on a strong note at 16,687.32, the Bombay Stock Exchange Sensitive Index, or Sensex, remained firm after data showed an increase in industrial production, the news of Ambani brothers' clash resolution attempt and sustained buying interest.

For August 2009, the IIP (Index of Industrial Production) surged 10.4% as compared to 6.89% during the previous month.

The Sensex closed the day at 17,026.67 after gaining 384 points (2.31%). Nifty hit the 5,000 level and touched an intraday peak of 5,068.05. But finally it marked its closure at 5,054.25, up 109 points.

The Sensex closed on a firm note on Wednesday, supported by heavy buying in IT stocks and a few old economy majors.

The 30-share index, which hit an intraday high of 15,831.49 during afternoon trade, marked its closure after gaining 81.38 points at 15,769.85. On the other hand, the broad based Nifty settled the day at 4680.85, up 21.50 points.

Several midcap and smallcap stocks rallied sharply and closed on a positive note. The BSE Midcap index surged 1.10%, whereas the Smallcap index closed 1.97% up as against its last closing mark.

London - Britain should give up the lead role it shares with the United States in Afghanistan after a dramatic rise in troop deaths and a slump in public backing, a parliamentary report urged Sunday.

There had been "significant mission creep" of extra roles for British troops since their initial deployment in 2001, according to the report by the House of Commons Foreign Affairs Committee, a body which includes both governnment and opposition MPs.

The Sensex closed strongly on Monday on account of firm global signals, optimistic earnings and aggressive buying witnessed across the board.

IT stocks were in public interest followed by real estate, banking and oil & gas stocks, while FMCG stocks went down.

The 30-share index opened the day on a higher note after gaining 109.25 points at 14,854.17.

After that, Sensex gained momentum and hit the psychological mark of 15,000 on strong buying activity. The index also touched an intraday high of 15,209.36.   

The 30-share index BSE Sensex, which opened at 14,591.28, up 69.39 points, marked its closure on a weak note on Monday, led by oil & gas, metal, power and realty stocks.

The stocks, which saw good buying action included FMCG, capital goods and banking. On the back of positive global signals, Sensex hit an intraday high of 14,668.40.

While commenting on the market outlook, Alex Mathew, head, research centre, Geojit BNP Paribas Financial Services, stated that Nifty has major support at 4,450.

Mr. Mathew also said that Nifty can test 4,221 below the said level.

He added that Nifty has resistances at 4,550-4,745.

While commenting on stock market outlook for Tuesday (June 2), Alex Mathew, Head, Research Centre, Geojit BNP Paribas Financial Services, stated that the major support for Nifty is at 4429 and 4380.

Mr. Mathew has also suggested a strong resistance for NSE Nifty in 4550-4610 range.

He added that the stock market is heavily over bought and capitalists should be watchful when market is trading near to the resistance levels.

“We may see profit booking coming into the market from tomorrow or day after tomorrow,” he added.

While commenting on the market outlook for May 25, 2009, Alex Mathew, head, research centre, Geojit BNP Paribas Financial Services stated that Nifty has a major support at 4,150 and 3,886 that is still unbroken while the resistance is there at 4,375 and 4,450 levels.

While commenting on the market performance of the day, Alex Mathew head, research centre - Geojit Financial Services stated that the stock markets belled the day in green on account of optimistic prompts coming in from the worldwide markets and dealt robustly all the morning session but capitalists cashed in on the gains produced during the morning session that occurred in the noon session earlier than the weekend and marked its closure in green but off the days` low.

Alex Mathew, head - research centre, Geojit Financial Services, said that the stock market, on Tuesday (Sep 30), recovered a lot from its lows on reports from the Finance Ministry that state run banking institutions do not have risky exposure, and the fundamentals of Indian economic system are really strong. 

Mr. Mathew said, “It is very interesting to note that US Chicago Board Options Exchange’s volatility Index has increased by 39% to 48.4% and finally closed at 46.7% yesterday.”