INSUBCONTINENT EXCLUSIVE:
After the earnings season, the domestic market has calmed down, leaving behind fears of liquidity and global selloff
Macro-economic factors have started to turn in favour of India Inc
A massive fall in crude oil prices and a rise in the rupee should have double impact on cost structures and boost companies such as OMCs,
Indian indices have quickly adjusted themselves to the new macro-dynamics and have been rising since the past three weeks
However, we must still wait for some more clarity to determine their trends
The market is expected to move decisively only after December after the outcome of the state assembly elections
The pillars behind Apollo Tyres, Onkar Kanwar and Neeraj Kanwar, have voluntarily reduced their compensation by 30 per cent
Earlier they were drawing individually Rs 42 crore, an obscene amount by any standard
Ashok Chawla from YES Bank and Vinod Dasari from Ashok Leyland have resigned for whatever reasons
All of these boil down to only one point: corporate governance has indeed taken center stage in the true spirit, which will go a long way in
creating a healthy capital market
Events of the Week All aviation stocks reported losses for September quarter
However, historical impact portrays an image only from the rear-view mirror
rumours of the Tatas bailing out Jet Airways
These all have led to a sudden change in sentiments from fear to hope
This stock doubled from a dreadful low of Rs 164 in October to euphoric Rs 342
This was a 360-degree turn in fortunes on the stock price, but what will happen on the business front remains a matter of speculation
Therefore, traders are advised not to pre-empt the outcome, and stay cautious.
Technical OutlookNifty50 has exactly completed the 38 per
cent retracement of the entire fall
Generally, it is observed that Nifty50 retraces around 50 per cent and, hence, there is some room left on the upside
Nonetheless, any weakness from the current level can take the index back to 10,000 level
One needs to observe weakness in short positions but longs on breakouts should be avoided, as all breakouts most likely will turn out to be
Expectations for the Week The market is expected to remain directionless, but volatile which will be a difficult scenario for traders to
Hence, one must be cautious as the indecisiveness of Mr Market can result in whipsaw losses
With the earnings season almost over, the market will keep an eye on the rollover of CPs by non-banking finance companies
Although a good part has already got rolled over or redeemed, a significant part still remains, and that needs to be watched
The current phase of hibernation and consolidation could last a couple of weeks, but hopefully the election results will wake up the market
Investors and traders are, therefore, advised to stay away
Investors should hold on to their core investment portfolios, while traders should stay light on their trading bets
The Nifty50 ended the week 0.91 per cent higher at 10,682.
