India Stocks Outlook: NSG meet, oil prices to give cues next week

[B. Karthick]

India Stocks Outlook: NSG meet, oil prices to give cues next week
Saturday, Sep 6

Next week, key share indices are seen taking cues from the outcome
of Nuclear Suppliers Group meet regarding the Indo-US nuclear civilian
deal, which ended yesterday.
There are mixed views in the market on the (NSG) waiver issue. Some
expect it to come in favour while some do not. More or less market
expects it
to be inconclusive as there are a lot of loopholes in it.
In case the NSG meet does not have a favourable outcome, market
could see further downside, whereas a positive outcome could boost
share prices in short-term.
One can expect rally in Areva T&D in case of positive outcome (from
the
NSG meeting).
Movement in overseas markets and crude oil prices will also be key
determinants of market direction.
Sensex ended at 14483.83, down 415.27 points or 2.8% from Thursday.
Nifty closed at 4352.30, down 95.45 points or 2.15%.
India VIX or volatility index rose 4.55% from the previous session.
Next week will be very crucial to decide on market trend. If Sensex
breaks 14000 and Nifty 4200, we could see a big downward move in
market.
We see resistance for Sensex and Nifty at 15100 and 4522,
respectively.
Bank shares are likely to remain range-bound.
Bank stocks will be eyed as there are lot of banking and insurance
reforms expected. We are particularly looking at PSU (public sector
unit)
banks. Bank of India looks a safe bet at around 240-rupee levels.
Other bank shares that one can buy at lower levels are State Bank
of
India, ICICI Bank, and Axis Bank.
However, any upside is likely to be capped, as there are still some
market rumours of a rate hike doing the rounds.
If Nifty cross 4522, one can resort to selective buying in stocks
like Tata
Power, NTPC, and Housing Development & Infrastructure.

B.Karthick
Research Analyst.