Indian Markets Outlook for the week – 1.09.2014 to 05.09.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
Indian stock indices
are seen trading firm this week after they ended at record closing
levels on Thursday,
and as long positions were rolled into the September derivatives
series.
The better than
estimated GDP growth data outcome is also expected to boost the positive
sentiment in market.
Indian economy
expanded 5.7 percent in the first quarter of FY15, the highest in nine
quarters, against a
growth of 4.6 percent in Q4 of 2013-14. The economy grew 4.7
percent in the
year-ago period. The economy grew at its highest pace since the fourth
quarter of FY12.
However, Supreme
Court hearing on coal block allocations today will be the key in
determining the trend
for this week. Earlier last week, the apex court declared all coal
block allocations
since 1993 as illegal, saying that no proper procedure was followed
while awarding these
blocks.
The threat that the
apex court may de-allocate the coal blocks remains and Metal, Mining,
and power sector
stocks may trade subdued because of that. Jindal Steel and Power,
which took the
maximum beating from the Supreme Court's ruling earlier this week, will
be closely watched.
The stock ended down 4.6% at Rs.233. From the beginning of last
week, the stock has
lost 26.3%.
Automobile stocks
will also be in focus as companies release sales data for August which
is expected that the
auto-makers to report strong sales numbers for August, aided by
lower base effect.
The Nifty is seen to
breach 8000 perhaps in this week as the fresh F&O expiry is going to
start with the
positive rollovers in index and in core sector stocks.
Nifty is seen drawing
strong support between 7850-7900 points. The resistance levels is being stood at
8050/8100 levels.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
