Market Next


September 11
18:24 2016

Nifty made a new 52 week high at 8969 but did not sustain at high due to profit booking.  Monday we saw good amount of buying in all sectors except IT sector.  Going forward one can expect marginal decline in Indices due to weak global market conditions and profit booking.  On Friday US market closed negatively and US futures are also looking weak due to concerns of a possible rate hike.  Federal Reserve officials indicated a possible rate hike in the near term.  Concerns of North Korea’s missile test also shattered the global markets. Nifty has supports at 8801 and 8764, a decisive move below these two levels can put pressure on Indices and it may test 8721.  Resistances for the Nifty are at 8969 and 9028.

 Last week Nikki Service Business Activity Index rose 54.7 in August from 51.9 in July, which is the highest since last three and half years.  Nikki India Composite PMI output Index climbed to a 42 month high of 54.6 in August.

Globally the demand for Coal is increasing due to higher demand from China, lower output from India.  Coal prices internationally gained nearly 17 month high; largest coal producing countries are anticipating a La Nina, which can further cut coal output.  In 2010 and 2011 La Nina affected the production due to unpredictable weather conditions.  One can have close watch the stocks which are in this segment.

Macro data’s like Continuing Jobless Claims, Initial Jobless Claims, US Retail Numbers, Industrial production and US Inflation numbers are expected in the next week.  In India Industrial production, Inflation, Manufacturing Production, WPI Inflation, WPI Manufacturing, WPI Food Inflation, Balance of Trade, Bank Deposit and Loan Growth numbers would come.  From the EURO side Inflation rate, Balance of Trade, Industrial production, Current Account and Retail sales number are due next week.

European markets closed marginally lower on Friday after ECB President indicated that it would not consider an increase in asset purchases and North Korea’s claim that they had tested Nuclear Bomb and that they can easily install on the warheads of rockets.

Bajaj Hind, BGR Energy, R.Power, Tata Steel, Amtek Auto, Dredging Corp, GODFRYPHLP, BEML, NBCC R.Com and Rolta are set to announce quarterly earnings next week.

IT sector is looking extremely weak, minor profit booking can also be expected in the Banking Sector, Cement, auto mobile sectors.  Price declines in auto stocks can be utilised to invest for long term.  Private sector banking stocks can also be bought if there are sharp cuts in price.

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