India Stocks Outlook : Seen range bound next week ahead of Budget
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K.Karthik Raja
Feb 23, 2008, 12:42:52 AM2/23/08
to Kences1
India Stocks Outlook: Seen range bound next week ahead of Budget
MUMBAI - The equity market is likely to remain range bound next
week as investors start to build expectations from the Union Budget
due Friday.Until there is some positive or negative trigger, market
will remain range bound but it is very difficult to take a call on
what will happen in the Budget.
We expect the markets to remain volatile ahead of the FY09 Union
Budget, but does not expect Finance Minister P. Chidambaram to do
anything that would upset investor sentiment.
Post budget market may witness a small correction as the trigger
is out of the way.Chidambaram will present the 2008-09 (Apr-Mar) Union
Budget on Friday. Rollover of positions to the March futures series on
expiry of the current month contract is also likely to add to the
volatility
Nifty is likely to trade in the 5000-5300 range for the next few
sessions, as heavy open interest addition was witnessed in 5000 put
option and 5300 call in the last two (Wednesday, Thursday) sessions,
We believe that Monday will be a crucial trading session for market
as Nifty yesterday closed at a key support of 5050,which is also the
200-day daily moving average for the index.
If Nifty falls below 5050 on Monday, then it could go down to 4900
and then 4800 level. But if Nifty manages to stay above 5050 then it
could go up from current levels.
Nifty closed at 5110.75, down 81.05 points or 1.6%. Sensex ended
at 17349.07, down 385.61 points or 2.2% from Thursday.
INVESTMENT OPPORTUNITIES
We believes that share valuations are reasonable after the recent
correction and sees plenty of investment avenues. Global uncertainty
as the biggest concern for the market right now, and we recommends
investment in sectors such as steel, engineering, banking and natural
resources that are dependent on the domestic growth story.
Reliance Power is likely to remain in focus, as the company's
board will meet Sunday to consider the ratio of a likely bonus share
issue.
Reliance Power will be included in BSE-500 index from Feb 29.
Centurion Bank of Punjab could see some more action after saying
its board will mull a merger with HDFC Bank Saturday.
K.Karthik Raja
www.kences1.blogspot.com
MUMBAI - The equity market is likely to remain range bound next
week as investors start to build expectations from the Union Budget
due Friday.Until there is some positive or negative trigger, market
will remain range bound but it is very difficult to take a call on
what will happen in the Budget.
We expect the markets to remain volatile ahead of the FY09 Union
Budget, but does not expect Finance Minister P. Chidambaram to do
anything that would upset investor sentiment.
Post budget market may witness a small correction as the trigger
is out of the way.Chidambaram will present the 2008-09 (Apr-Mar) Union
Budget on Friday. Rollover of positions to the March futures series on
expiry of the current month contract is also likely to add to the
volatility
Nifty is likely to trade in the 5000-5300 range for the next few
sessions, as heavy open interest addition was witnessed in 5000 put
option and 5300 call in the last two (Wednesday, Thursday) sessions,
We believe that Monday will be a crucial trading session for market
as Nifty yesterday closed at a key support of 5050,which is also the
200-day daily moving average for the index.
If Nifty falls below 5050 on Monday, then it could go down to 4900
and then 4800 level. But if Nifty manages to stay above 5050 then it
could go up from current levels.
Nifty closed at 5110.75, down 81.05 points or 1.6%. Sensex ended
at 17349.07, down 385.61 points or 2.2% from Thursday.
INVESTMENT OPPORTUNITIES
We believes that share valuations are reasonable after the recent
correction and sees plenty of investment avenues. Global uncertainty
as the biggest concern for the market right now, and we recommends
investment in sectors such as steel, engineering, banking and natural
resources that are dependent on the domestic growth story.
Reliance Power is likely to remain in focus, as the company's
board will meet Sunday to consider the ratio of a likely bonus share
issue.
Reliance Power will be included in BSE-500 index from Feb 29.
Centurion Bank of Punjab could see some more action after saying
its board will mull a merger with HDFC Bank Saturday.
K.Karthik Raja
www.kences1.blogspot.com
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