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INDIAN STOCK MARKET OUTLOOK OF THE WEEK: 27-11-2017

INDIAN STOCK MARKET OUTLOOK OF THE WEEK: 27-11-2017
November 27
01:55 2017

INDIAN STOCK MARKET OUTLOOK FOR THE UPCOMING WEEK

Last week Sensex made a new 52 week high at 33738 looks very strong, despite prevailing over bought situation.  Investors might have been created a lot of long positions ahead of S&P sovereign rating announcement on anticipation of possible rating upgrade.  But after the trading hours S&P maintained India’s rating at BBB- with outlook stable.  India’s sizable fiscal deficit, low per capita Income and high government debts are the key concerns for the S&P.

Most probably we can expect minor profit booking on Monday after the S&P rating announcement.  Nifty have resistances at 10466 and 10500.  If Nifty moves above these two levels then we can expect a level of 10566.  Immediate support levels are at 10324 and 10307.  Below these support levels Nifty may get strong support at 10278.

Investors can create long positions but should take utmost care when Nifty is very close to its resistance levels.  On Friday India’s VIX dropped by around 2.5% and closed at 13.5, which will give minor stability to the markets.  Dow Jones is still positive with low S&P500 VIX at 9.67 indicates strong outlook for US.  As the global cues are positive out markets can also move up strongly but upside is capped due to strong resistance levels.

Bank Nifty is positive, both PSU Banks and Private banking stocks may move up selectively, don’t expect all round buying in all banking stocks.  We can expect sharp rally in pharma stocks, despite minor hiccups to selective stocks at this sector.  Immediate resistance at 9445 and strong support can be expected at 9211.  Like Pharma stocks IT stocks are also likely to move up in the days to come.  Nifty Infra and Nifty Auto sector stocks are also looking positive, one can expect rally in these sectors also.

Next week on November 30th India’s GDP growth rate and Infrastructure Output data’s will come out.  On Friday Nikkei Manufacturing data and Foreign Exchange Reserve are also be announced.  From US, GDP growth rate QoQ and US Fed Yellen Speech are the key macro data’s which can affect the market sentiments. Mid-Cap companies like Vadilal, IL&FS Eng, Atlas Cycle and 8K mills will come out with quarterly earnings next week.

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ALEX MATHEWS

ALEX MATHEWS

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