Saturday, December 13, 2014

INDIAN MARKET & SECTORWISE STOCKS OUTLOOK FOR THE WEEK - 15.Dec.2014 - 19.Dec.2014

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Oil Stocks Outlook for the week – 15 to 19.12.2014

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Benchmark stock indices are expected to see further downside next week as industrial production data for October, released by Central Statistics Office after market hours lastday, disappointed market participants.

According to the data, industrial production for October contracted by 4.2% as against a contraction of 1.2% a year ago. Markets had expected industrial growth at 2.5% in October. However, the consumer price indexed inflation for November was in line with Street's estimate, and stood at 4.38% as against 5.52% a year ago.

Investors may take further cues from weak global equities. Trade in global equities is expected to be cautious ahead of the two-day US Federal Reserve Open Committee meeting that would begin on Tuesday. Trade is also expected to be weak as foreign institutional investor activity may be subdued with the onset of the holiday season.

The Nifty is expected to trade in the range of 8170-8390 points next week. Today, the index ended at 8224.10, down 68.80 points or 0.8% from close on Thursday, and the S&P BSE Sensex was at 27350.68, down 251.33 points or 0.9%.

Various fundamentals will keep Nifty under pressure. Major technical indicators are indicating further downfall in coming week. In the oil and gas space, with the crude oil price slipping below the crucial psychological level of $60 per barrel, stocks of upstream oil companies and oil marketing companies may continue to remain in focus.

West Texas Intermediate crude fell 2.6% to $59.36, its lowest level since July 2009. Brent crude oil dropped 1.4% to $63.34. Stocks of most upstream oil companies such as Cairn India, Oil and Natural Gas Corp and Oil India are seen extending losses, in case crude oil prices weaken further.

With the rupee under pressure, defensive sectors such as pharmaceutical companies, information technology and fast moving consumer goods companies will remain in focus next week. The mid-cap and the small-cap sector are seen under-performing the broad market next week.

www.rupeedesk.in )