Indian Markets Outlook for the week – 1.09.2014 to 05.09.2014
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
Indian stock indices are seen trading firm this week after they ended at record closing
levels on Thursday, and as long positions were rolled into the September derivatives
series.
The better than estimated GDP growth data outcome is also expected to boost the positive
sentiment in market.
Indian economy expanded 5.7 percent in the first quarter of FY15, the highest in nine
quarters, against a growth of 4.6 percent in Q4 of 2013-14. The economy grew 4.7
percent in the year-ago period. The economy grew at its highest pace since the fourth
quarter of FY12.
However, Supreme Court hearing on coal block allocations today will be the key in
determining the trend for this week. Earlier last week, the apex court declared all coal
block allocations since 1993 as illegal, saying that no proper procedure was followed
while awarding these blocks.
The threat that the apex court may de-allocate the coal blocks remains and Metal, Mining,
and power sector stocks may trade subdued because of that. Jindal Steel and Power,
which took the maximum beating from the Supreme Court's ruling earlier this week, will
be closely watched. The stock ended down 4.6% at Rs.233. From the beginning of last
week, the stock has lost 26.3%.
Automobile stocks will also be in focus as companies release sales data for August which
is expected that the auto-makers to report strong sales numbers for August, aided by
lower base effect.
The Nifty is seen to breach 8000 perhaps in this week as the fresh F&O expiry is going to
start with the positive rollovers in index and in core sector stocks.
Nifty is seen drawing strong support between 7850-7900 points. The resistance levels is being stood at 8050/8100 levels.
( For Sectorwise Weekly Outlook Watch: www.rupeedesk.in )
