Market Next


February 13
01:07 2017

After the lacklustre movement in last week Nifty managed to close at 8793, with the firm support from Europe and US market data’s.  European equity markets witnessed highest ever closing after 2015. US markets are also looking very strong and many macro data’s are suggesting strong economical recovery.  According to Deutsche Bank strategist US market could rise further in 2017.  Technical indicators are also suggesting strong rally on the cards.  S&P 500 VIX which measures the investor sentiment declined to 10.73 suggesting firm out-look for the markets in the days to come. Domestic investors were expecting 25basis point cut in the RBI policy meet, but RBI maintained status co.  During the last week two major macro data’s which came out were below market expectation.  Industrial Production reported a growth of -1.29% and Manufacturing production by -2%.  Sustained domestic and FII buying supported the market in a big ways despite these negative market cues.

Going forward Nifty may test 8900 in the near term, and if Nifty can close at least 2 days consecutively above 8900 then we can even expect 9000 levels without many problems.  Nifty has support at 8679, a decisive move below this level can cause further selling on markets but chances are remote.  It is prudent to lighten up trading open long positions when Nifty is close to its supply zones i.e 9000.  Banking Nifty is still looks positive despite last week rally.  Banking Nifty has support has 19929 and resistances at 20505 and 20639.  As the technical charts are supporting the Banking Nifty it is advisable to trade long, but one should reduce quantity because of the impending profit booking on Nifty.

Metal Index is overbought and we can expect corrections till Wednesday in usual market condition.  Nifty metal Index has support at 3045 and 2924.  Resistance for the Metal Index is at 3200.  One can create long positions when Nifty metal index comes very close to the first support level.  Healthcare, Oil and Gas and FMCG stocks will also show sideways to negative movements in the early part of the week.  Nifty IT index is slightly positive but it is already entered into the overbought territory.  IT index has support at 10116 and resistance at 10611.

Many of the  Large cap, mid-cap and small cap stocks are expected to come out with earnings next week; among them AIA Eng, ALBK, All Cargo, Balaji tele, BEML, BGR Energy, CONCOR, Hindalco, HPCL, MMTC, NBCC, NMDC, PFC, SADBHAV, Adani  Ent, DCW, Fin Cable, Jindal Steel, Kohinoor, Lovable, MOIL, NATCO Pharma, ROLTA, Thomas Cook and Voltas are few big names.

Macro data’s which can affect market sentiments in US are due next week are Retail Sales YOY and MOM, Industrial Production and Manufacturing Production.  From the EURO Zones data’s due are Retail Sales, GDP Growth Rate, Inflation Rate and Balance of Trade and from India are Inflation Rate, WPI Manufacturing YOY and most importantly the Balance of trade.

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