India Stocks Outlook: May extend gains next week; oil prices eyed
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B. Karthick
Aug 30, 2008, 1:19:28 AM8/30/08
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India Stocks Outlook: May extend gains next week; oil prices eyed
Saturday, Aug 30
Key share indices are likely to extend gains next week provided
crude oil prices stay at current levels or ease further.
Technical indicators suggest yesterday's gains are likely to
sustain as indices closed near the day's high.
Nifty closed at 4360.00, up 146.00 or 3.5%, from Thursday.
Sensex ended at 14564.53, up 516.19 points or 3.7%.
India VIX or volatility index fell 4.9% from previous session.
A very important level to watch is 4400 on Nifty. If that high is
broken, Nifty can touch 4530. If it fails to hold on to 4320 and 4280
on the lower side, market may come down to 4150.
However, frontline shares look attractive at current levels.
Bank and real estate shares might extend gains next week, caution
is to be exercised in realty space since there are no positive
triggers for the sector in near-term.
Real estate shares have fallen sharply, but they are extremely
volatile. Banks are a safer bet with fundamentals in place and cheap
valuations.
RBI in its Annual Report for 2007-08 (July-June), said the
immediate challenge now is to bring inflation down to a tolerable
limit. The central bank said it sees some upside risks to inflation
going forward, but a further softening in oil prices can help
inflation ease to RBI's tolerance level of 7%.
RIL (Reliance Industries) also looks good below 2,100 rupees.
Other outperformers that one can buy are Reliance Capital, Larsen &
Toubro, and Sterlite Industries in the metal space.
Among other stocks, Tata Motors is likely to be in focus, as it
will decide on terms and price of its proposed 42-bln-rupee rights
issue Tuesday.
Other developments the market will eye include outcome of the
Nuclear Suppliers Group meet on waivers for India's civilian nuclear
plans and inflation data for week to Aug 23, due Thursday.
Volumes might remain thin due to lack of cues from U.S. market,
which will be closed Monday on account of Labour Day, and as the
Indian stock market will also be closed Wednesday for Ganesh
Chaturthi. End
B.Karthick
Research Analyst.
Saturday, Aug 30
Key share indices are likely to extend gains next week provided
crude oil prices stay at current levels or ease further.
Technical indicators suggest yesterday's gains are likely to
sustain as indices closed near the day's high.
Nifty closed at 4360.00, up 146.00 or 3.5%, from Thursday.
Sensex ended at 14564.53, up 516.19 points or 3.7%.
India VIX or volatility index fell 4.9% from previous session.
A very important level to watch is 4400 on Nifty. If that high is
broken, Nifty can touch 4530. If it fails to hold on to 4320 and 4280
on the lower side, market may come down to 4150.
However, frontline shares look attractive at current levels.
Bank and real estate shares might extend gains next week, caution
is to be exercised in realty space since there are no positive
triggers for the sector in near-term.
Real estate shares have fallen sharply, but they are extremely
volatile. Banks are a safer bet with fundamentals in place and cheap
valuations.
RBI in its Annual Report for 2007-08 (July-June), said the
immediate challenge now is to bring inflation down to a tolerable
limit. The central bank said it sees some upside risks to inflation
going forward, but a further softening in oil prices can help
inflation ease to RBI's tolerance level of 7%.
RIL (Reliance Industries) also looks good below 2,100 rupees.
Other outperformers that one can buy are Reliance Capital, Larsen &
Toubro, and Sterlite Industries in the metal space.
Among other stocks, Tata Motors is likely to be in focus, as it
will decide on terms and price of its proposed 42-bln-rupee rights
issue Tuesday.
Other developments the market will eye include outcome of the
Nuclear Suppliers Group meet on waivers for India's civilian nuclear
plans and inflation data for week to Aug 23, due Thursday.
Volumes might remain thin due to lack of cues from U.S. market,
which will be closed Monday on account of Labour Day, and as the
Indian stock market will also be closed Wednesday for Ganesh
Chaturthi. End
B.Karthick
Research Analyst.
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