Local markets have been influenced by Political developments and Earning outlook. For 5 days in a row it slipped as investors took money off the table even as FIIs have been net buyers for 9 days in row. Cyclicals outperformance in last couple of months is linked to electoral hopes. Better than expected earnings from Financials too supported sentiment. FMCG has been an underperformer on the forecast of below normal monsoon and slowdown in earnings.
While market in extreme ST will be influenced by the election outlook expectations(elections to 448 of the 543 seats is already behind) and the final outcome on 16th, Monsoon progress and earnings focus for the year ahead will be the near term drivers. Off course global developments will be the other reason for the addition to the domestic volatility in the coming days.
Watch Out for :
1.China HSBC Mfg PMI
4.US Services PMI
Nifty future is up 4 pts in early mng trades on SGX while Bank of NY Mellon Indian ADR index closed up 0.3% last Friday..
Nifty traded in a range bound manner forming an Inside Day candle for the day. Having seen a sharp run up in the last 10 wks, the index now seems likely to consolidate and trade in a range for next 2 weeks between 6610 and 6800 before seeing a significant move in either direction. Put writing is seen @ 6600/6700 and call writing @ 7000
1.Q4 Results – HeroMotoCorp, Emami, Century Textile
2.XD – Bata(Rs. 6.5), Gruh(Rs.3/-)
Short term Trading Idea : Bharti Airtel, Lupin, KVB, Tata Coffee, LnT, SI Bank, Tata Comm
Investment Call : Apollo Hospital, ICICI Bank, Sun Pharma, Oberoi Reality, Motherson Sumi