Indian stock indices are likely to trade with a negative bias next week as they
were unable to sustain gains and ended down 1% yesterday. We are some
expecting trade to be rangebound due to lack of fresh triggers for the
market. Action will focus on stocks of companies detailing earnings for the
quarter ended December. The trend in overseas markets will also be watched
for cues. We expect the National Stock Exchange's 50-share Nifty to move in
the 6150-6350-point range next week. On breaking the crucial support of 6150,
the index can decline to 6050. Yesterday, National Stock Exchange's 50-share
Nifty ended below its psychologically crucial 6300-mark and the S&P BSE
30-scrip Sensex closed below its significant 21100- level due to selling in
index heavyweights. Nifty ended at 6261.65, down 57.25 points or 0.9% from
Thursday. Sensex ended at 21063.62, down 201.56 points or 0.9%. MCX Stock
Exchange's SX40 ended at 12581.29, down 106.65 points or 0.8%. On the
earnings front, index heavyweight Reliance Industries is likely to rise to
900 rupees on Monday as the company's Oct-Dec net profit of 55.11 bln rupees
was higher than estimate of 53.16 bln rupees. The stock ended down 0.2% at
884.75 rupees yesterday. On Monday, share indices may track the momentum set
by the index major RIL. Sector-wise, market participants expect shares in
the financial space to witness selling pressure. Among specific stocks, Tata
Consultancy Services that ended down nearly 6% at 2,213.05 rupees, is
expected to decline further to 2,140 rupees next week on disappointment over
the information technology bellwether's Oct-Dec revenue performance and
volume growth. Coal India, that slumped 10% to 272 rupees as the stock went
ex-dividend on yesterday, is likely to trade in a range of 260-285 rupees
next week, also advises investors to avoid buying shares of Ranbaxy
Laboratories, that ended down for the sixth consecutive session, closing 2.4%
lower at 406.35 rupees, as he expects the stock to decline further to 385
rupees. Asian Paints, UltraTech Cement, Kotak Mahindra Bank, Housing
Development Finance Corp, Cairn India and Larsen & Toubro, among others,
will be reporting their Oct-Dec earnings next week.
