Indian Markets Outlook for the week – 02.May.2016 to 6.May.2016
(Seen choppy next week; earning, global markets eyed)
(Seen choppy next week; earning, global markets eyed)
( www.rupeedesk.in )
Domestic share indices are seen
trading choppy next week, with corporate earnings for the March
quarter, movement in the global
markets, developments in the on going Budget Session of Parliament, and April
automobile sales figures seen as key triggers for equities. We do not see any
sharp gains in the benchmark indices
and expect the Nifty 50 index to stay below the important
psychological barrier of 8000 points.
On technical charts, the Nifty 50 seen facing strong resistance
around 7980 points, while losses for
Nifty 50 are also seen capped at 7780, which is the 200-day
exponential moving average for the
index.
Yesterday, the Nifty 50 and the
S&P BSE Sensex ended flat at 7849.80 points and 25606.62,
respectively. The Nifty Bank index is
expected to trade with a positive bias and the index is seen
testing the 17000-point mark, even as
it finds support at 16400 points. Yesterday, the index ended
up 0.5% at 16795 points. The stock in
focus yesterday was ICICI Bank, which is seen rebounding
towards 251 rupees next week, after
having ended 1.3% lower at 236.95 rupees yesterday, as the
bank said it will take time to
recover loans in stressed sectors such as metals, mining, power, and
cement. The automobile sector would
be in focus next week as companies report their sales numbers for April.
April usually witnesses higher
despatches of two-wheelers and tractors because of the marriage
season, and therefore we expect a
good performance from two-wheeler and tractor OEMs. We
expects Tata Motors and Ashok Leyland
to report robust sales numbers in the commercial vehicles
segment, with Hero MotoCorp likely to
post growth for the fourth consecutive month. Yesterday, the stock declined
6.3% at 118.55 rupees as short positions were added in its May futures on
account of profit booking. Investors were also concerned that increasing
competition in the sector could lead to a rise in debt. On the other hand, HCL
Technologies is expected to trade weak after having ended down 6.2% at 750.30
rupees.
EARNINGS IMPACT
Next week, Housing Development
Finance Corp, Adani Ports and Special Economic Zone, Eicher Motors, Hero
MotorCorp, and Grasim Industries are the Nifty 50 constituents that will report
their
Jan-Mar earnings. Housing Development
Finance Corp will report its earnings on Monday. Steady
core operating income and a sharp
surge in total income are seen lifting the company's net profit by
20% to 22.38 bln rupees. Other
companies that will report their earnings next week are Adani power, Jindal Steel and Power, Godrej
Properties, Emami, New Delhi Television, NIIT Technologies, and Pfizer.( www.rupeedesk.in )
