Indian Markets Outlook for the week – 23.Nov.2015 to 27.Nov.2015
Choppy
next week on rollovers to Dec F&O series
( www.rupeedesk.in )
Trade
next week is likely to remain volatile due to rollovers to the December futures
and
options
series, and as equities remain in a sell-on-rise mode. Rollover of positions
will be
largely
take place on Monday, and Tuesday, ahead of the expiry of the November
derivatives
series on Thursday, as market would remain shut on Wednesday for Guru
Nanak
Jayanti.
The
underlying bias for market, though, remains weak, as market participants
continue to
utilise
higher levels as exit opportunities. However, a runaway up move seems unlikely
in
the
upcoming truncated expiry week as FIIs (foreign institutional investors) cash
buying
is
still missing. Yesterday, FIIs net sold Indian shares worth 940.9 mln rupees on
the
BSE,
NSE, and Metropolitan Stock Exchange combined, according to provisional data on
the
NSE website.
The
data showed domestic institutional investors net bought shares worth 6.10 bln
rupees.
Besides
rollovers, market participants will watch out for the Winter Session of the
Parliament,
which begins on Thursday. The fate of crucial bills, particularly the Goods
and
Services Tax bill, will be keenly monitored, more so, because the monsoon
session
was
a washout. Although Nifty 50 crossed 7900 points during the session yesterday,
it
failed
to sustain.
Yesterday,
the index closed at 7856.55, up 13.80 points or 0.2% from Thursday's close,
while
the S&P BSE's Sensex closed at 25868.49, up 26.57 points or 0.1%. Both the
indices
closed sharply off the day's high of 1% due to selling in banking stocks. In
the
futures
segment, the gap between the Nifty 50's November contract and spot turned to a
discount
of nearly five points from a 15.6-point premium on Thursday. Open interest in
the
contract fell 5.3% to 15.79 mln.
In
options, traders unwound long positions in 7700-put option of Nifty 50, while
writing
was
seen in 8000-8200 call options. After witnessing rollover of short positions to
the
December
derivatives series yesterday, banks are seen drifting lower in the coming week.
While
support for the Nifty Bank lies at 16800 points, a closing above 17200 points
is
likely
to propel the index higher towards 17400 points. The Nifty Bank closed 0.1%
lower
at 17055.60 points yesterday, off the session's high of 1.0%.
Stocks
of Vedanta and Hindalco Industries are seen falling Monday as BSE yesterday
said
these companies would be removed from the Sensex effective Dec 21. Asian
Paints,
and
Adani Ports and Special Economic Zone, which would replace these two stocks in
the
index, are seen rising. GAIL India, the top performer in yesterday's trade, is
seen
rising
further to 360 rupees. The stock had jumped 10% to 349.55 rupees yesterday led
by a
rally in shares of gas distribution companies. Automobile stocks are also seen
rising
Monday
and trade with a positive bias during the week on prospects of higher sales
once
the
recommendations of the Seventh Pay Commission come into effect.
( www.rupeedesk.in )