Indian Market Outlook for the week - 17 to 21.04.2017
Indian Market Outlook for the week - 17 to 21.04.2017
( www.rupeedesk.in )
Benchmark indices are seen moving in a narrow range next week as investors' focus will shift to quarterly earnings which started with Infosys. Infosys' weak earnings in Jan-Mar and disappointing growth guidance for 2017-18 (Apr-Mar) disappointed investors last day. It weighed not only on the information technology sector but on the broader market as well. The decline in Infosys pulled down Nifty 50 and Sensex by 0.6% each to 9150.80 points and 29461.45, respectively. Intraday, Nifty 50 breached the 9150-mark and touched a low of 9144.95. The dismal show by Infosys triggered selling by foreign institutional investors who offloaded shares worth 4.08 bln rupees last thursday, according to provisional data on the National Stock Exchange website. Though market participants expect the weakness to spill over to the next week, they do not anticipate any sharp fall in indices. Most expect Nifty 50 to find strong support at 9100 points. Another reason why market participants see limited downside for shares is because of derivatives data showing no major liquidation of long positions in the April futures of Nifty 50 and absence of any short positions. Though Nifty is hovering around its strong support zone of 9150-9200, we are not seen any meaningful activity from FIIs. Thus, market seems to be waiting for fresh buying from stronger hands in order to resume its upward momentum. The Nifty 50 trading at an all-time high is a reflection of the surprise resilience of GDP growth post demonetisation and the Bharatiya Janata Party's victory in state Assembly elections. Year-to-date returns have, however, been driven almost entirely by multiple expansion and FX appreciation, neither of which we believe, is Sustainable.
Source : Cogencis Information Services Ltd.
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Indian Market Outlook for the week - 17 to 21.04.2017
( www.rupeedesk.in )
Benchmark indices are seen moving in a narrow range next week as investors' focus will shift to quarterly earnings which started with Infosys. Infosys' weak earnings in Jan-Mar and disappointing growth guidance for 2017-18 (Apr-Mar) disappointed investors last day. It weighed not only on the information technology sector but on the broader market as well. The decline in Infosys pulled down Nifty 50 and Sensex by 0.6% each to 9150.80 points and 29461.45, respectively. Intraday, Nifty 50 breached the 9150-mark and touched a low of 9144.95. The dismal show by Infosys triggered selling by foreign institutional investors who offloaded shares worth 4.08 bln rupees last thursday, according to provisional data on the National Stock Exchange website. Though market participants expect the weakness to spill over to the next week, they do not anticipate any sharp fall in indices. Most expect Nifty 50 to find strong support at 9100 points. Another reason why market participants see limited downside for shares is because of derivatives data showing no major liquidation of long positions in the April futures of Nifty 50 and absence of any short positions. Though Nifty is hovering around its strong support zone of 9150-9200, we are not seen any meaningful activity from FIIs. Thus, market seems to be waiting for fresh buying from stronger hands in order to resume its upward momentum. The Nifty 50 trading at an all-time high is a reflection of the surprise resilience of GDP growth post demonetisation and the Bharatiya Janata Party's victory in state Assembly elections. Year-to-date returns have, however, been driven almost entirely by multiple expansion and FX appreciation, neither of which we believe, is Sustainable.
Source : Cogencis Information Services Ltd.