Indian Markets Outlook for the week – 26.Oct.2015 to 30.Oct.2015
Results key next week; China move to lift market Monday
( www.rupeedesk.in )
Corporate
earnings and outcome of the US Federal Open Market Committee's monetary
policy
meeting will lend direction to domestic share indices next week, but on Monday
indices
are set to witness a gap-up opening as China announced a cut in interest rates.
After
Indian market hours, China announced that it had cut its one-year lending rate
and
one-year
deposit rate by 25 basis points, and reduced its reserve requirement ratio by
50
basis
points to boost the economy.
Major
European indices extended their intraday gains on the news and were up over 1-
3%.
A near 1% rise in Dow futures indicates that the US market will also open on a
strong
note later yesterday. Apart from these markets, prices of base metals on the
London
Metal Exchange also advanced following China's move, which may boost stocks
of
domestic metal and mining companies on Monday.
Yesterday,
the Bank Nifty ended up 1.3% at 17934.05 points. Whether the gains in
indices
sustain over the week will depend on corporate earnings and outcome of US
FOMC's
monetary policy meeting on Wednesday. Given the earnings-heavy week and
expiry
of the October derivatives series, also expect some volatility in the domestic
equities.
Rollovers
will be closely watched this time around as the lot size for the Nifty is
higher in
the
November derivatives series. In August, the NSE had announced a revision of the
lot
size
of the CNX Nifty to 75 from 25 starting from the November contract.
Broadly,
Nifty is seen moving in the 8200-8400 point range next week. Expect the index
to
face stiff resistance between 8350 and 8400 points. Yesterday, share indices
ended up
but
off the two-month high it hit intraday on weakness in some telecommunication
companies'
shares and select index heavyweights. The Nifty closed up 43.75 points or
0.5%
at 8295.45 points and the Sensex ended up 183.15 points or 0.7% at 27470.81
points.
In
the coming week, Bharti Airtel, Housing Development Finance Corp, Lupin, Maruti
Suzuki
India, Ambuja Cements, Dr Reddy's Laboratories, YES Bank, ICICI Bank, ITC,
Kotak
Mahindra Bank and ICICI Bank will detail Jul-Sep earnings. On Monday, Asian
Paints
may open down 2-3% as the company's Jul-Sep earnings, released after market
hours
yesterday, fell short of analysts' estimates.
( www.rupeedesk.in )
