Indian Markets Outlook for the week – 24.11.2014 to 28.11.2014
Benchmark equity indices are seen
rangebound with a positive bias in the coming sessions ahead
of expiry of the November
derivatives contract on Thursday. Market participants will keenly
watch for cues from overseas
markets too.
However, some market participants
expect profit booking to set in. Nifty is seen trading at
overbought zone levels, major
indicators are suggesting some correction. The Nifty is expected
to trade in the 8000-8500 points
range next week.
Yesterday, the 50-share Nifty
ended at a record closing high of 8477.35, up 75.45 points or
0.9%. Intraday, the index hit a
record high of 8489.80 points.
The S&P BSE Sensex also ended
at a record closing high of 28334.63, up 267.07 points or 0.9%.
Intraday, it touched a record
high of 28360.66 points.Action will mostly be stock specific as
investors await major reforms.
The goods and services tax bill
and insurance bill will be tabled in the winter session of the
Parliament that begins next week.
Most market participants refrained from stock selection for the
week due to lack of broader
participation in the rally.
We believe this upward (trend)
would continue but broader participation is required to regain the
momentum. Meanwhile, participants
are advised to uphold stock specific approach and strictly
avoid illiquid stocks from the
cash segment.
Investors believe that there is
further steam in most bank stocks after the Bank Nifty touched a
lifetime high of 18139.95 points.
Further upside is seen in ICICI Bank, Axis Bank, State Bank of
India, and IndusInd Bank.
Movement in rupee will determine
the trend in information technology stocks such as Wipro,
Tech Mahindra, Tata Consultancy
Services, and Infosys.
Stocks of most metal companies such
as Jindal Steel and Power, Steel Authority of India and
Tata Steel are expected to weaken
in the coming sessions as a fall in steel prices due to low
demand, higher steel exports from
China, and a volatile outlook for pricing of base metals has dampened sentiment
