Saturday, October 24, 2015

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MAJOR SECTORWISE STOCKS & INDIAN MARKET OUTLOOK FOR THE WEEK - 26.Oct.2015 to 30.Oct.2015

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FMCG Stocks Outlook for the week – 26 to 30.10.2015 Positive next week; ITC, Dabur earnings in focus

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Corporate earnings and outcome of the US Federal Open Market Committee's monetary
policy meeting will lend direction to domestic share indices next week, but on Monday
indices are set to witness a gap-up opening as China announced a cut in interest rates.
After Indian market hours, China announced that it had cut its one-year lending rate and
one-year deposit rate by 25 basis points, and reduced its reserve requirement ratio by 50
basis points to boost the economy.

Major European indices extended their intraday gains on the news and were up over 1-
3%. A near 1% rise in Dow futures indicates that the US market will also open on a
strong note later yesterday. Apart from these markets, prices of base metals on the
London Metal Exchange also advanced following China's move, which may boost stocks
of domestic metal and mining companies on Monday.

Yesterday, the Bank Nifty ended up 1.3% at 17934.05 points. Whether the gains in
indices sustain over the week will depend on corporate earnings and outcome of US
FOMC's monetary policy meeting on Wednesday. Given the earnings-heavy week and
expiry of the October derivatives series, also expect some volatility in the domestic
equities.

Rollovers will be closely watched this time around as the lot size for the Nifty is higher in
the November derivatives series. In August, the NSE had announced a revision of the lot
size of the CNX Nifty to 75 from 25 starting from the November contract.

Broadly, Nifty is seen moving in the 8200-8400 point range next week. Expect the index
to face stiff resistance between 8350 and 8400 points. Yesterday, share indices ended up
but off the two-month high it hit intraday on weakness in some telecommunication
companies' shares and select index heavyweights. The Nifty closed up 43.75 points or
0.5% at 8295.45 points and the Sensex ended up 183.15 points or 0.7% at 27470.81
points.

In the coming week, Bharti Airtel, Housing Development Finance Corp, Lupin, Maruti
Suzuki India, Ambuja Cements, Dr Reddy's Laboratories, YES Bank, ICICI Bank, ITC,
Kotak Mahindra Bank and ICICI Bank will detail Jul-Sep earnings. On Monday, Asian
Paints may open down 2-3% as the company's Jul-Sep earnings, released after market
hours yesterday, fell short of analysts' estimates.