India Market Outlook: Volatile Monday; Overseas markets eyed
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K.Karthik Raja
Mar 15, 2008, 1:10:14 AM3/15/08
to Kences1
India Market Outlook: Volatile Monday; Overseas markets eyed
Friday, Mar 14
Key share indices are seen volatile Monday with a negative bias
as investor sentiment continues to remain weak amid uncertain market
direction.
Inflation over 5% and lower industrial growth figures for the
month of
January may continue to weigh on indices.
Investors are likely to book profits at every rise, maintaining
caution
ahead of the U.S. Federal Reserve's monetary policy meet Tuesday.
Cues from overseas markets will play an important role in
determining market direction here.
Sensex closed at 15760.52, up 403.17 points, or 2.6% from
Thursday. Nifty ended at 4745.80, up 122.20 points or 2.6%.
Overall trend is weak, with support for Nifty between 4580-5019.
Important support is at 4580, below which Nifty can test its January
low of 4431. However, does not rule a slight bounce back, with Nifty
likely to touch 4800/5000 next week.
The weak trend would change only if Nifty closes above 5050, which
is its 200-day moving average.
In volatile markets, investors are more likely to turn to a
defensive sector like pharmaceuticals.
Among pharmaceutical shares, we are mostly positive on Ranbaxy
Laboratories as it looks strong on technical charts. The stock may
touch 532-540 rupees next week.
Bank shares are seen firm after Finance Minister P. Chidambaram
detailed how the 600-bln-rupee farm loan waiver would be refunded to
banks.Chidambaram said the farm debt waiver will be funded from tax
buoyancy and that banks will be reimbursed 250 bln rupees in cash from
Jul 1 this year to Jun 30, 2009.
Another 150 bln rupees, 120 bln rupees, and 80 bln rupees cash
will be made available for the farm loan waiver in successive years,
he said.
The move is positive, particularly for PSU (public sector unit)
banks.
The bad loans account for banks' non-performing assets. With the
funding now, banks' NPAs will reduce and with a specified timeline,
they can start in this quarter (Jan-Mar) itself.
Trading hours on NSE and BSE stay extended until Mar 18 due to sun
outage. Trading hours during this period will be from 9:55AM to
4:15PM, with suspension of trade from 11:45AM to 12:25PM.
K.Karthik Raja
www.kences1.blogspot.com
Friday, Mar 14
Key share indices are seen volatile Monday with a negative bias
as investor sentiment continues to remain weak amid uncertain market
direction.
Inflation over 5% and lower industrial growth figures for the
month of
January may continue to weigh on indices.
Investors are likely to book profits at every rise, maintaining
caution
ahead of the U.S. Federal Reserve's monetary policy meet Tuesday.
Cues from overseas markets will play an important role in
determining market direction here.
Sensex closed at 15760.52, up 403.17 points, or 2.6% from
Thursday. Nifty ended at 4745.80, up 122.20 points or 2.6%.
Overall trend is weak, with support for Nifty between 4580-5019.
Important support is at 4580, below which Nifty can test its January
low of 4431. However, does not rule a slight bounce back, with Nifty
likely to touch 4800/5000 next week.
The weak trend would change only if Nifty closes above 5050, which
is its 200-day moving average.
In volatile markets, investors are more likely to turn to a
defensive sector like pharmaceuticals.
Among pharmaceutical shares, we are mostly positive on Ranbaxy
Laboratories as it looks strong on technical charts. The stock may
touch 532-540 rupees next week.
Bank shares are seen firm after Finance Minister P. Chidambaram
detailed how the 600-bln-rupee farm loan waiver would be refunded to
banks.Chidambaram said the farm debt waiver will be funded from tax
buoyancy and that banks will be reimbursed 250 bln rupees in cash from
Jul 1 this year to Jun 30, 2009.
Another 150 bln rupees, 120 bln rupees, and 80 bln rupees cash
will be made available for the farm loan waiver in successive years,
he said.
The move is positive, particularly for PSU (public sector unit)
banks.
The bad loans account for banks' non-performing assets. With the
funding now, banks' NPAs will reduce and with a specified timeline,
they can start in this quarter (Jan-Mar) itself.
Trading hours on NSE and BSE stay extended until Mar 18 due to sun
outage. Trading hours during this period will be from 9:55AM to
4:15PM, with suspension of trade from 11:45AM to 12:25PM.
K.Karthik Raja
www.kences1.blogspot.com
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