INSUBCONTINENT EXCLUSIVE:
proved that realities of economic dynamics is always the guiding factor and politics is only sentiment, which has negligible shelf life
Post the rollercoaster ride, Indian bourses strengthened midway through the week on hopes that economics of the country are robust, and
markets are above politics
Nifty and Sensex recovered from oversold levels despite weak global headwinds, thus bringing in the necessary stability around these levels
disinvestment target for this financial year was around Rs 89,000 crore, out of which Rs 32,000 crore has been raised
Raising the balance amount seems to be a Herculean task given the current state of the market
OFSes are expected in New India Assurance, GIC and NMDC, which will keep stock prices depressed not only for the PSUs but also for the
broader market, which will face a subdued effect as liquidity will be sucked out of the system
This will keep markets under pressure till the general elections next year.
Events of the WeekThe appointment of a new RBI Governor and
A coalition is the last thing that India Inc wants at the Centre
The public gives a decisively clear mandate is all that Mr Market is waiting for
A coalition government would likely impact economic growth; stability in the system is the key towards a growing economy
The Rafale deal could be a game-changer in the political conundrum next year.
Technical OutlookThe short-term momentum is upward, but the
strength is weakening by the day
The number of advances is steadily coming down, which indicates that this event-based rally will see profit booking at higher levels
Likely levels for the Nifty50 on the higher side are 10,900 and 11,100, which are 50 per cent and 61 per cent retracement rise of the entire
fall, respectively.
Selling will emerge at higher levels
Therefore, traders are advised to be selective on going long, but should be ready to go short on any weakness.
Expectations for the
WeekMarkets are likely headed towards a broader trading range as the state election phobia is now over
Also, yearend profit booking will keep the market under check
Nonetheless some sectors/stocks have become attractive given the negative narratives in the market that plagued them, leading to decent
In the auto sector, there is MM and Bajaj Auto whereas CanFin Homes and Indiabulls Housing Finance have become attractive for investment
Motilal Oswal and IIFL in the financial services sector while Godrej Consumer Products and ITC are available at decent valuations from the
All these companies have enough margin of safety and are attractively poised for long-term growth
However, investors must take decisions after taking their individual risks and capital allocation into consideration.
The Nifty50 ended this
week 1.04 per cent higher at 10,805.
