Indian Markets Outlook for the week – 25.08.2014 to 28.08.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
Stocks indices are likely to be volatile next week as rollovers get underway ahead of the
expiry of the August futures and options contract on Thursday. Thursday will also be the
last trading day next week for markets on account of Ganesh Chaturthi holiday on Friday.
Despite the likely choppiness, the underlying sentiment for equities will be positive. Most
on the Street expect the National Stock Exchange's 50-stock Nifty to test 8000 points.
The 8000-points milestone for Nifty has been long expected, but so far the index has not
been able to breach it because of very strong resistance. However, if it does cross 8000, it
would be another lifetime high for Nifty, as its current lifetime high is 7929.05, recorded
yesterday.
After a mostly subdued session, stock indices yesterday ended marginally up, led by
gains in stocks of banks and information technology companies. Nifty ended at 7913.20,
up 22.10 points or 0.3%. Intraday, it hit a low of 7900.05 and lifetime high of 7929.05.
The S&P BSE's 30-share Sensex ended at 26419.55, up 59.44 points or 0.2%, after
touching a low of 26383.16 and a high of 26508.27. We see 7800 as support for Nifty
next week. On Monday, indices will take cues from US Federal Reserve Chair Janet
Yellen's speech yesterday at a conference in Jackson Hole, US. Speculation over the
timeline in change of US' low interest rate policy continues amidst talk of Jackson Hole
being a currency event.
Among sectors, most are positive on the banking and information technology space and
expect them to extend gains. Yesterday, Bank Nifty hit a lifetime high of 15865.30
points, but ended at 15819.15 points, up 1% from the previous close. On the other hand,
stocks in the fast moving consumer goods and pharmaceutical space are seen weak, as
traders expect them to consolidate. Defensive sectors like pharma and FMCG will
consolidate although FMCG stocks would also depend on monsoons. Monsoons will also
act as a trigger for the broader market. In the short term, geo-political issues and monsoons will be the triggers to track.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
