GOLDEN RULES FOR TRADING

Capital Good Stocks Outlook for the week – 06 to 10.2016 (In range with positive bias next week)

Capital Good Stocks Outlook for the week – 06 to 10.2016
(In range with positive bias next week)

The shares of capital goods companies are seen trading with a positive bias next week as recent correction in stocks post a mixed earnings season coupled with positive outlook from most companies may attract investors.

While companies continued to face execution challenges, stretch working capital cycles and weak order inflows during the last quarter of 2015-16 (Apr-Mar), management comments of most major capital goods companies reiterated their positive outlook for 2016-17 (Apr-Mar).

For FY17, (Cummins India) management guided for revenue growth of 8-12% in the domestic business and flat with a downward bias for exports. Management sounded
positive on industrials and power generation.