Nifty has been able to eke out gains based on a select few bluechip stocks.Mumbai:The ongoing third quarter earning results, budget expectations, developments in US-China trade relations and Brexit issue will chart course of markets in weeks to come.Also any volatility in crude oil prices will continue to affect rupee, which has weakened for two consecutive weeks."Traders should trade cautiously for next 10 days as markets prepare and discount budget expectations," said Sahil Kapoor, Chief Market Strategist, Research, Edelweiss Wealth Management.The NSE Midcap Index has closed at a five week low and is beginning to witness broad based selling.
Nifty on other hand has been able to eke out gains based on a select few bluechip stocks.The quarterly results will remain in focus in upcoming weeks as major third quarter results by Kotak Mahindra Bank, Maruti Suzuki, Larsen and Toubro, Yes Bank, Asian Paints and ITC is scheduled to be announced."Trading woes will be dictated by upcoming interim budget with investors preparing to reshuffle their portfolio according to their expectations." said Rahul Sharma of Equity99.In November, Bank of England had warned that a no-deal Brexit can cause a recession worse than 2008 financial crisis.
After Brexit deal was rejected by British Parliament with a significant margin, investors will keep a close watch on developments in same.On partial US government shutdown, New York Federal Reserve President John Williams has raised a red flag saying that shutdown is an emerging headwind to economic growth.
The prolonged shutdown is causing uncertainty among investors.According to Viral Berawala of Essel Mutual Fund, investors awaited next steps for UK after Prime Minister Theresa May's government narrowly survived a no-confidence vote.
Losing vote has made it harder to have a smooth Brexit.Regarding US-China trade relations, Berawala said that reports of Beijing offering to ramp up imports from Washington and latter considering to lift some tariffs on Chinese products would boost global investor sentiments."The Nifty would need to convincingly close above recent highs of 10,931, for it to move towards 11,200 levels in coming week; else range bound price action could continue.
Crucial support to watch in coming week for weakness is 10,692," Jasani said.The SP BSE Sensex gained 376.77 points, or 1.04 per cent, to close at 36,386.61, whereas Nifty gained 112 points, or 1.04 per cent, to settle at 10,906.95 during week gone by.The rupee continued to depreciate for second week on trot, as it weakened by 69 paise to Rs 71.18 against US dollar from its previous close of Rs 70.49.Provisional data from BSE since start of year showed that foreign institutional investors offloaded stocks worth Rs 2,318.76 crore as against domestic investors buying Rs 1,842.31-crore shares.