madhansurya
28-10-2007, 11:30 AM
In between the clouds of worries over P notes indices hovered to new high at the end of the week. There was a bit of caution ahead of SEBI meet with FIIs on P notes. Lack of clarity on P notes saw some outflow of fund but interest continued from domestic fund though many of them are on the sideline to get in. Quarterly Results added to the sentiments. Banking and Capital goods were the major index driver. L&T and Suzlon were the star performer for the week with their results. SBI gained on some rights issue. On the second last day SEBI announced that sub-account holders can not issue P-notes. As per the rule they will have to register first and then invest. It had some impact in the start, but, markets recovered strongly. But we think this would affect incremental views almost immediately. The date to decide the assets under control is a month back and that means that the extra $ 2-3 bn which has come in October created some winding down already.
On Political front: For now politics also seems to be on kind. Govt. is seems ready to miss the nuclear bus. Elections have been delayed for another 18 months and that?s probably good news in terms of stability. However it may not be on the policy front.
There are 2 major events scheduled next week i.e the RBI credit policy and Fed Meet which could drive the market. US Indices traded ranged with Crude hovering over $91 a barrel and mixed economic data. Fall in orders for Durable goods as well the raise in Jobless claim dampened the sentiments while jump in new home sales brought in some relief. The Market hopes Fed to cut rate by 50 bps. While in India there no cut expected as of now. Let wait and watch these events.
Crude rallied for the week as it crossed $90 a barrel which could push the panic button. The airlines are biggest hit really. They were hoping for good occupancy and some benign prices. Negatives also seen for Paint and Tyre companies.. On the Currency front, Rupee continues to trade below $40 a Dollar.
Sensational week in the market with Sensex Closing above 19200 levels. Sensex and Nifty both Zoomed over 10% for the week.
Sensex Weekly Gainers were LNT (28.51%), SBI (25.39%), REL (25.33%), BHEL (18.67%),Tata steel (16.83%), ICICIBank (16.21%), HDFC bank (13.61%) and Hindalco (11.22%). Losers for the week are TCS (-2.97%), Infosys (2.94%), Bajaj Auto (0.34%), Drreddy (0.38%), , Wipro (0.22%).
Technically Speaking: Sensex has shown tremendous strength in this week, closing at the all time high. The strength is still mostly concentrated in the large caps. We see sensex reaching the 20k figure soon. The immediate resistance are seen at 19475 and 19610. And Support seen at 18830 and 18545..
The major events next week are Mid-Term Review of Annual Policy by the Reserve Bank of India on Tuesday, 30 October 2007, and policy meeting of the US Federal Reserve on 31 October 2007. Bank of Japan also holds its policy meeting on 31 October 2007.
Market men see no change in interest rates by RBI in Mid-Term Review of Annual Policy on Tuesday. It remains to be seen whether RBI raises cash reserve ratio so as to suck out excess liquidity in the banking system.
There are hopes that the US Federal Reserve will cut interest rates again at its policy meet on 31 October 2007, given the recent weak US economic data. A further cut in interest rate by Fed, if any, will only add to global liquidity which already remains high. This in turn will ensure that FII inflow in India will continue even as their buying vigour may not be as strong as was recently due to Sebi restrictions on PNs.
Key Q2 September 2007 results next week Maruti Suzuki, Bharat Heavy Electricals, HDFC and Mahindra & Mahindra on Monday, 29 October 2007, ONGC, Steel Authority of India, Tata Power, DLF on Tuesday, 30 October 2007, and Tata Motors on Wednesday, 31 October 2007. On Saturday, 27 October 2007, NTPC, Grasim, State Bank of India will unveil Q2 results.
Wrapping up:
The positive trend should continue this week. The Sensex is likely to target 20,000 to 21,000 by the year-end. On the downside, the index has a near support at 19,000 and below this, it may drop to 17,870.
The NSE Nifty came quite close to its peak of 5737 as it touched a high of 5717, up 646 points from the week’s low of 5071.
The index settled with a gain of 9.3 per cent (487 points) at 5702. The Nifty could face resistance around 5970 before crossing the 6000 mark. It is likely to find significant support around 5400 in case of a downmove.
The Sensex may face resistance around 20,045-20,295-20,550 this week. Support, on the downside, should emerge around 18,440-18,190-17,940. The Nifty, on the other hand, may face resistance around 5950-6025-6100, while on the downside, it is likely to find support around 5455-5380-5300 in the coming week.
On Political front: For now politics also seems to be on kind. Govt. is seems ready to miss the nuclear bus. Elections have been delayed for another 18 months and that?s probably good news in terms of stability. However it may not be on the policy front.
There are 2 major events scheduled next week i.e the RBI credit policy and Fed Meet which could drive the market. US Indices traded ranged with Crude hovering over $91 a barrel and mixed economic data. Fall in orders for Durable goods as well the raise in Jobless claim dampened the sentiments while jump in new home sales brought in some relief. The Market hopes Fed to cut rate by 50 bps. While in India there no cut expected as of now. Let wait and watch these events.
Crude rallied for the week as it crossed $90 a barrel which could push the panic button. The airlines are biggest hit really. They were hoping for good occupancy and some benign prices. Negatives also seen for Paint and Tyre companies.. On the Currency front, Rupee continues to trade below $40 a Dollar.
Sensational week in the market with Sensex Closing above 19200 levels. Sensex and Nifty both Zoomed over 10% for the week.
Sensex Weekly Gainers were LNT (28.51%), SBI (25.39%), REL (25.33%), BHEL (18.67%),Tata steel (16.83%), ICICIBank (16.21%), HDFC bank (13.61%) and Hindalco (11.22%). Losers for the week are TCS (-2.97%), Infosys (2.94%), Bajaj Auto (0.34%), Drreddy (0.38%), , Wipro (0.22%).
Technically Speaking: Sensex has shown tremendous strength in this week, closing at the all time high. The strength is still mostly concentrated in the large caps. We see sensex reaching the 20k figure soon. The immediate resistance are seen at 19475 and 19610. And Support seen at 18830 and 18545..
The major events next week are Mid-Term Review of Annual Policy by the Reserve Bank of India on Tuesday, 30 October 2007, and policy meeting of the US Federal Reserve on 31 October 2007. Bank of Japan also holds its policy meeting on 31 October 2007.
Market men see no change in interest rates by RBI in Mid-Term Review of Annual Policy on Tuesday. It remains to be seen whether RBI raises cash reserve ratio so as to suck out excess liquidity in the banking system.
There are hopes that the US Federal Reserve will cut interest rates again at its policy meet on 31 October 2007, given the recent weak US economic data. A further cut in interest rate by Fed, if any, will only add to global liquidity which already remains high. This in turn will ensure that FII inflow in India will continue even as their buying vigour may not be as strong as was recently due to Sebi restrictions on PNs.
Key Q2 September 2007 results next week Maruti Suzuki, Bharat Heavy Electricals, HDFC and Mahindra & Mahindra on Monday, 29 October 2007, ONGC, Steel Authority of India, Tata Power, DLF on Tuesday, 30 October 2007, and Tata Motors on Wednesday, 31 October 2007. On Saturday, 27 October 2007, NTPC, Grasim, State Bank of India will unveil Q2 results.
Wrapping up:
The positive trend should continue this week. The Sensex is likely to target 20,000 to 21,000 by the year-end. On the downside, the index has a near support at 19,000 and below this, it may drop to 17,870.
The NSE Nifty came quite close to its peak of 5737 as it touched a high of 5717, up 646 points from the week’s low of 5071.
The index settled with a gain of 9.3 per cent (487 points) at 5702. The Nifty could face resistance around 5970 before crossing the 6000 mark. It is likely to find significant support around 5400 in case of a downmove.
The Sensex may face resistance around 20,045-20,295-20,550 this week. Support, on the downside, should emerge around 18,440-18,190-17,940. The Nifty, on the other hand, may face resistance around 5950-6025-6100, while on the downside, it is likely to find support around 5455-5380-5300 in the coming week.