INSUBCONTINENT EXCLUSIVE:
Markets turned out to be extremely volatile this week, taking even the experts by surprise on which way the market is heading
Corporate numbers were not appreciated even after delivering robust set of numbers, which is a cause of worry
HUL posted a staggering 19 per cent PAT growth, but the stock was down 7.6 per cent, post results
Mahindra CIE, JK Tyres and Mindtree had all delivered great set of numbers, but still the stock prices were hammered
This throws an important signal that the upside is limited at least in the near term
Although markets are likely to touch new highs to test the strength of the bulls, it seems more likely that they would recede from the
highs and make a failed top, given the internal weakness
The sentiment is low, which comes from the fact that IPOs are getting below-average response
However, all that is going to change when HDFC AMC comes out with its IPO next week at an attractive value proposition
Any euphoric response to such an IPO could possibly mark the top in the Nifty
We do recommend subscribe HDFC AMC from a long-term investing perspective
Events of the week:The government is planning a breakthrough policy decision which will decrease the logistic costs for the economy, which
is currently as high as 16% compared with the global average of 10 per cent to 12 per cent
The plan is to allow truckers to increase the load factor by 20-25 per cent
This may lead to a slowdown in CV sales and therefore, some companies may be impacted
But it is good for the long-term competitiveness of the economy
Technical Outlook:The Nifty is likely to touch previous highs after a small consolidation phase
Still, the indicators have not reached overbought levels that make a strong case for the NSE benchmark touching 11,170 levels in the short
Momentum is intact, which should allow the Nifty to test higher levels
Given that the breadth of the broader market is weak, there is every likelihood that higher levels will not sustain
Expectations for the week:Since the Parliament sessions are going on, some amount of political conundrum could drive market volatility
It is expected that reforms agenda will get accelerated, which would be a positive for the markets in general
Investors must maintain a cautious stance, as the year ahead is heavily clouded by political drama
Contra bets in metals, realty and housing finance companies -- which are heavily beaten down -- can be good bets, going forward
Quarterly earnings of a few companies such as ACC, Asian Paints, Ambuja Cement, Indiabulls Ventures, Hero MotoCorp, JSW Steel would be
In general, investors should now adopt a wait and watch policy before taking fresh investment positions
The Nifty50 closed the week marginally down by 0.07 per cent to close at 11,010.20.
