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India's industrial production data, wholesale price index-based inflation, Oct-Dec earnings of companies, and overseas markets will set the tone for local stock indices next week. Industrial production growth data for November will be released by the Central Statistics Office later yesterday and WPI inflation rate for December will be released by commerce ministry on Tuesday. India's industrial production is likely to have expanded 0.9% in November primarily due to a low base effect and improved manufacturing activities. Coal India, YES Bank, Axis Bank, Bajaj Auto, HCL Technologies, Tata Consultancy Services, HDFC Bank, ITC, Reliance Industries, and Wipro are among the major Nifty companies reporting earnings next week. Overall, we expect indices to trade in a narrow band, but the bias is seen negative after correction witnessed this week. After multiple attempts of making a new high, the markets failed to sustain at higher levels. The pattern formed over the last three months is of a rising wedge which is a negative reversal pattern. The break of the rising trend line support near 6200 level (on Nifty) has confirmed the breakdown of this pattern. Minimum targets to the downside for this move lie at the 5970 mark, below which we can see this fall extend to levels of 5700 as well. Yesterday, National Stock Exchange's Nifty ended at 6171.45, up 3.10 points from Thursday. The S&P BSE's Sensex closed at 20758.49, up 45.12 points or 0.2%. MCX Stock Exchange's SX40 ended at 12423.34, up 56.51 points or 0.5%. Information technology stocks may trade positive next week, but could witness bouts of profit booking after the recent rally. Banking stocks may see some selling pressure, while trade in telecom stocks is likely to be rangebound. However, we see scope for further gains in Bharti Airtel.
India's industrial production data, wholesale price index-based inflation, Oct-Dec earnings of companies, and overseas markets will set the tone for local stock indices next week. Industrial production growth data for November will be released by the Central Statistics Office later yesterday and WPI inflation rate for December will be released by commerce ministry on Tuesday. India's industrial production is likely to have expanded 0.9% in November primarily due to a low base effect and improved manufacturing activities. Coal India, YES Bank, Axis Bank, Bajaj Auto, HCL Technologies, Tata Consultancy Services, HDFC Bank, ITC, Reliance Industries, and Wipro are among the major Nifty companies reporting earnings next week. Overall, we expect indices to trade in a narrow band, but the bias is seen negative after correction witnessed this week. After multiple attempts of making a new high, the markets failed to sustain at higher levels. The pattern formed over the last three months is of a rising wedge which is a negative reversal pattern. The break of the rising trend line support near 6200 level (on Nifty) has confirmed the breakdown of this pattern. Minimum targets to the downside for this move lie at the 5970 mark, below which we can see this fall extend to levels of 5700 as well. Yesterday, National Stock Exchange's Nifty ended at 6171.45, up 3.10 points from Thursday. The S&P BSE's Sensex closed at 20758.49, up 45.12 points or 0.2%. MCX Stock Exchange's SX40 ended at 12423.34, up 56.51 points or 0.5%. Information technology stocks may trade positive next week, but could witness bouts of profit booking after the recent rally. Banking stocks may see some selling pressure, while trade in telecom stocks is likely to be rangebound. However, we see scope for further gains in Bharti Airtel.
