A week of all-time records for the markets

Maintaining the momentum built up over the previous two weeks, the indices scales their previous lifetime highs during the week. Firm global markets and continued FII inflows, even though more modest than September and early October, helped the markets this week.

Volatility was expected to increase during the week as the derivatives settlement was due on Thursday. At higher levels, the indices were expected to lose momentum especially since mid-caps had not participated much in this month's rally.

After losing nearly 2 per cent each on the first two days of the week, the Sensex gained more than 100 points on each of the following three days. The Nifty also followed a similar pattern.

Contrary to expectations, there was not much volatility on Thursday or the day before. The indices maintained a clear up trend as traders built up positions in the December derivatives series.

The Sensex went past the previous high of 8822 on Friday and managed to close above that level. Nifty went close to its high of 2569 on that day, but could not go past those levels.