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Earnings for the quarter ended March and US Federal Open Market Committee's two-day meet will give direction to indices next week. The US Federal Reserve is scheduled to hold its meeting on Tuesday and Wednesday. With stock exchanges shut on Thursday for Labour Day, indices will react to the US Fed decision on Friday.
Even though participants expect yesterday's weakness to carry forward to Monday, the underlying bias is positive as indices hit lifetime highs today as well. Correction seen yesterday, and the one likely on Monday, is viewed as healthy by most participants as they feel some consolidation is normal at higher levels.
Indices took a breather yesterday, retreating from their all-time highs, as participants took profits ahead of the weekend. Indices ended at a one-week low, led by losses in stocks of cement, fast moving consumer goods and select index heavyweight companies.
For the first time since Apr 17, the National Stock Exchange's 50-share Nifty ended below 6800 at 6782.75, down 58.05 points or 0.8%. It hit a lifetime high of 6869.85 intraday, and a low of 6772.85. S&P BSE's Sensex also hit a lifetime high of 22939.31 points before closing at 22688.07, down 188.47 points or 0.8%. Intraday it touched a low of 22660.38.
Market participants are of the view that Nifty may test 7000 next week. A few have not ruled out 7180 points either. On the downside, they expect gains to be restricted to 6650, the level at which Nifty has strong support. Nifty constituents reporting earnings next week include Hindustan Unilever, Bharti Airtel, Sesa Sterlite, Kotak Mahindra Bank, Jindal Steel and Power, and Grasim Industries.
Non-Nifty constituents Andhra Bank, Godrej Consumer Products, Idea Cellular Ltd, SKS Microfinance, Tata Sponge Iron, Dabur India, Federal Bank, Hex aware Technologies, IFCI, Indian Overseas Bank, ING Vysya Bank, JSW Energy, TVS Motor Co, IDBI Bank, Marico, Oriental Bank of Commerce and Hindustan Construction Co will also declare their earnings next week.
IDFC, State Bank of Travancore, and Siemens that reported their earnings post market hours yesterday, will be eyed on Monday.
Earnings for the quarter ended March and US Federal Open Market Committee's two-day meet will give direction to indices next week. The US Federal Reserve is scheduled to hold its meeting on Tuesday and Wednesday. With stock exchanges shut on Thursday for Labour Day, indices will react to the US Fed decision on Friday.
Even though participants expect yesterday's weakness to carry forward to Monday, the underlying bias is positive as indices hit lifetime highs today as well. Correction seen yesterday, and the one likely on Monday, is viewed as healthy by most participants as they feel some consolidation is normal at higher levels.
Indices took a breather yesterday, retreating from their all-time highs, as participants took profits ahead of the weekend. Indices ended at a one-week low, led by losses in stocks of cement, fast moving consumer goods and select index heavyweight companies.
For the first time since Apr 17, the National Stock Exchange's 50-share Nifty ended below 6800 at 6782.75, down 58.05 points or 0.8%. It hit a lifetime high of 6869.85 intraday, and a low of 6772.85. S&P BSE's Sensex also hit a lifetime high of 22939.31 points before closing at 22688.07, down 188.47 points or 0.8%. Intraday it touched a low of 22660.38.
Market participants are of the view that Nifty may test 7000 next week. A few have not ruled out 7180 points either. On the downside, they expect gains to be restricted to 6650, the level at which Nifty has strong support. Nifty constituents reporting earnings next week include Hindustan Unilever, Bharti Airtel, Sesa Sterlite, Kotak Mahindra Bank, Jindal Steel and Power, and Grasim Industries.
Non-Nifty constituents Andhra Bank, Godrej Consumer Products, Idea Cellular Ltd, SKS Microfinance, Tata Sponge Iron, Dabur India, Federal Bank, Hex aware Technologies, IFCI, Indian Overseas Bank, ING Vysya Bank, JSW Energy, TVS Motor Co, IDBI Bank, Marico, Oriental Bank of Commerce and Hindustan Construction Co will also declare their earnings next week.
IDFC, State Bank of Travancore, and Siemens that reported their earnings post market hours yesterday, will be eyed on Monday.
