Auto Stocks Outlook
for the week – 29.08.2016 to 02.09.2016
(Seen range bound
with overall positive bias)
( www.rupeedesk.in )
Stocks of major mobile companies are seen trading in a range
next week with an overall
positive bias for the near term, aided by expectations of a
healthy post-monsoon
demand and Payout of arrears based on the recommendations of
the Seventh Pay
Commission is also seen lifting demand.
The CNX Index, which closed 0.7% higher at 9538.40 points
yesterday, may remain
range bound in the next few sessions, finding resistance at
9800.00 levels and Support
for the index is seen at 9350.00 levels.
Last month, the government had approved recommendations of
the Seventh Central
Pay Commission with retrospective effect from Jan 1, 2016.
According to a report by
India Ratings and Research, the government will have to fork
out in excess of 340 bln
rupees on account of arrears for January to July and salary
payments for August.
Stocks of Maruti Suzuki are seen consolidating next week,
backed by strong
fundamentals and a good order book for its Baleno hatchback
and Vitara Brezza sports
utility vehicles. Besides, stocks of most two-wheeler makers
are seen consolidating
with a upward bias, mainly due to expectations of an
increase in the rural demand and a
turnaround in sales.