Indian Markets Outlook for the week – 19.Oct.2015 to 23.Oct.2015
Earnings to lend cues next week; RIL seen up Monday
( www.rupeedesk.in )
Index
heavyweight Reliance Industries' robust Jul-Sep earnings are set to further
lift the mood in the equity markets on Monday, but action in the latter part of
the week will be stock-specific, taking direction from earnings of other key
companies. Post market hours yesterday, Reliance Industries reported robust
earnings—a net profit of 65.6 bln rupees, beating analysts' estimate of 58.39
bln rupees.
The
company reported gross refining margin of $10.6 a barrel, up from $10.4 a
quarter ago. Besides Reliance Industries, the Jul-Sep earnings of other Nifty
constituents such as HCL Technologies, UltraTech Cement, ACC, Hero MotoCorp,
Bajaj Auto, Cairn India, HDFC Bank, Wipro, Idea Cellular, and Asian Paints will
be in focus next week.
Earnings
are important, vital. If earnings are not good, then I think we will see
disappointment post that. Some market participants advise caution, even if
indices gain. Traders should continue with positive yet cautious approach and
prefer only quality stocks even for the day trade. The global markets will also
be watched for cues. Technical analysts see the National Stock Exchange's Nifty
gaining next week and could test 8300 points after breaking the crucial support
level of 8200 points.
The
50-stock index is seen finding support at 8100 points. Yesterday, the Nifty
ended at a near two-month of 8238.15 points, up 0.7%, and the S&P BSE
Sensex gained 0.8% to end at 27214.60 points. Gains in the broad market were
led by banks, with the Bank Nifty ending as the top gainer among sectoral
indices, up 1.3% at 17912.85 points.
