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MARKET OUTLOOK FOR THE WEEK: 23-01-2017

MARKET OUTLOOK FOR THE WEEK: 23-01-2017
January 22
17:40 2017

Nifty closed in the negative territory on Friday at 8349. If Nifty moves down below 8249 then we can expect more down side to the market. Immediate resistances are at 8427 and 8500.If there is a decisive move on Nifty above 8500 then Nifty can move further North towards 9000 levels. If there are enough budget incentives for the financial markets then we can expect sharp upward movements.

At present market participants are cautious after the US Presidential address. Investors are keen to get more clarity on US foreign and economic policies. It is prudent to lighten up your open positions till the January expiry. Foreign Portfolio Investors are worried about the GAAR, and most probably they may stay sidelines at least for some times to get more cues.

Fresh long positions can be added in the new series, but one should avoid taking positions in Pharma and IT sector stocks. Budget expectations and quarterly earning seasons can put volatility at a higher level in the near term. So it is prudent not to write options, but one can buy options for February series selectively after studying the probability and volatility of options.

HCL-Tech and Wipro are expected to come out with its quarterly earnings next week. Technically IT index is weak and it is likely to test 10029 and having resistance at 10256. Nifty metal index is also weak but it can get minor support at 2857 and resistance at 3005. Price declines can be utilized to buy metal stocks in the near term.

Banking Nifty is also looking weak; it has support at 18499 and has resistances 19162 and 19422. It is also prudent not to create fresh long positions in banking stocks which are expected to come out with its quarterly earnings next week, especially public limited banking stocks.

Asian Paint, GNFC, IDEA, HUL, PFC, Aptech, Biocon, HCL –TECH, HDFC BANK, KTK BANK, Tata Sponge,TVS Motors, Arvind, Exide India, Maruti and WIPRO are the few prominent companies which are likely to come out with its numbers next week.

 

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ALEX MATHEWS

ALEX MATHEWS

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