Skip to main content

Indian Stock Markets next week - Whither?

Indian Stock Markets gained 4% last week and Nifty closed at 2948. Nifty recorded a high of 2969 and then moved sideways in a narrow band. Auto stocks have bounced back nicely, M&M gaining 16%, Maruti and Hero Honda gaining 9% each. Other non index gainers include Hexaware and Educomp up 50% for the week, for no big reasons.

Going ahead, the interim budget to be presented on Monday, which could provide some triggers for the market. Global markets could not make any progress last week. Disappointment came from unclear bail out package and grim economic numbers from Europe kept the lid on equity prices. More importantly , the DOW Jones index is crucially poised at 7800, after bouncing off from lows of 7700.

What to expect next week?

The Nifty has key resistances for the week at 3000/3050 and then at 3100. The current up-trend could extend a little further, depending on the interim budget and global markets.Breakout above 3050 will take Nifty to 3100. Conversely, inability to move past 3000 will signal impending weakness and a decline to 2860 and 2790.

Stock Levels for index heavy weights:

Reliance (1390): Reliance Industries moved to an intra-week peak at Rs 1,414 but was unable to penetrate this level.The area around Rs 1,400 is a strong resistance for the short-term.However, daily momentum indicators are weak, so it can decline to supports to 1340/1300.The stock is trading it is the upper band of its range between Rs 1,100 and Rs 1,400/1450.

Infosys (1254): Infosys reversed lower from an high of Rs 1,325.The stock has supports at Rs 1,220 and Rs 1,180. Reversal from either of these levels can be expected for short term.Break-out above Rs 1300 will take the stock to 1360.

SBI (1194): SBI closed the week with a 7% gain, while most of the other banking stocks looked weak and rangebound.Immediate resistances for the stock are at Rs 1,225 and then Rs 1,250.Supports in the week ahead would be at Rs 1,140 and then Rs 1,100.

Trader's favorites:

Reliance capital(433):Reliance Capital breached many of its long term supports and is currently halting around Rs 400. Resistance for the week exists at 460.Supports for the week are at 410/390.Below 360,the next long-term support band is between Rs 300 and Rs 320.

Aban offshore(455):
From a life-time high of 5400, the stock has been trending downward incessantly. Like Relcapital and many other stocks, Aban too has broken major supports during the major sell-off.However, most recently Aban offshore has halted at Rs 415 that was also the 52-week low.Since then, the stock has been on a short-term up-move.The stock has resistance at 490/515.

Comments

Popular posts from this blog

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare



Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…

What is NIFTY BEES - ETF?

NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.




The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …