Big week ahead! GDP data, 700 companies’ Q4 results; here are key things to watch in stock market

 

Indian equity markets have seen volatile sessions specifically in the last one month as the fourth-quarter earnings unfolded following which investors saw PNB reporting the biggest quarterly loss by any bank ever in the Indian history. If the last one-month picture is taken into consideration, the performance of benchmark indices Sensex and Nifty have been flat. The S&P BSE Sensex moved up 211 points or 0.6% to 34,925 from a level of 34,714 as on 26 April 2018 while, on the other hand, wider Nifty 50 index 12.65 points or 0.12% to 10,605.15 from a level of 10,617.8.

Going ahead in the next week, the domestic markets are likely to steered by upcoming Q4 earnings with over 700 companies set to report their respective fourth-quarter financial report card, GDP data for the period of January-March 2018, crude oil prices and rupee value against US dollar and settlement of India dated securities amounting to not more than Rs 12,000 crore auctioned by RBI.

Among the 700-plus companies which are scheduled to announce Q4 results in the week ahead, major firms are NTPC, Oil India, Dredging Corporation of India, Lanco Infratech, Ruchi Soya, NHPC, Bank of India, Indian Overseas Bank, Piramal Enterprises, Minda Corp, Hathaway Digital, NLC India, Walchandnagar Industries, United Bank of India, Aurobindo Pharma, NMDC, Coal India, Dilip Buildcon, MMTC, Dish TV, BHEL, Bharat Electronics, Ashoka Buildcon, Glenmark Pharma, Gati, BPCL, Simbhaoli Sugars, La Opala RG, Bharat Dynamics, Mishra Dhatu Nigam, Manpasand Beverages, Canara Bank, HDIL, Hindustan Copper, Fortis Healthcare, Punj Lloyd, ONGC, berger Paints, Infibeam Incorporation, GMR Infra, The Jammu & Kashmir Bank,Religare Enterprises, Torrent Pharma, Suzlon Energy, Rajesh Exports and Hindustan Aeronautics.

The settlement of RBI’s Rs 12,000 crore auction of India dated securities will take place on 28 May. The move is likely to see a spike in demand of rupee which may result in appreciation of the domestic currency against the US dollar. The Indian Rupee logged the biggest single-day gain on Friday surging as much as 56 paise apiece US dollar. Crude oil prices have fallen for three straight sessions with Brent crude slipping below $77 per barrel mark after it breached $80 level in the last week. India’s GDP data for the fourth quarter of the financial year will be announced on 31 May 2018.

MORE WILL UPDATE SOON!!

Foreign Investors Withdraw $4 Billion In May On A Rise In Crude Price

  

Foreign investors have pulled out a massive $4 billion (over Rs 26,700 crore) from capital markets so far this month, primarily due to a surge in global crude prices.

This comes after such investors had taken out more than Rs 15,500 crore from capital markets (equity and debt) in April, the steepest outflow in 16 months.

Foreign portfolio investors (FPIs) withdrew a net sum of Rs 7,819 crore from equities and another Rs 18,950 crore from the debt market during May 2-25, taking the total outflow to Rs 26,769 crore ($ 4 billion), according to the latest depository data.

Harsh Jain, chief operating officer at Groww, an investment platform, attributed the latest outflow mainly to a rise in cost of crude oil prices. This would impact all the oil-importing economies, including India, and adversely affect its current account deficit, fiscal deficit, imported inflation and create headwind for economic growth.

Besides, investors were cautious after U.S. President Donald Trump cancelled a planned meeting with North Korean leader Kim Jong Un and threatened to impose tariffs on auto imports. FPIs had started profit-booking before the Karnataka elections, a crucial indicator for the 2019 general elections results, he said.

“Another discomfort among the FPI (Category III) was the Securities and Exchange Board of India’s requirement for additional documents from key people in such a fund. Their concern is around the privacy and data theft,” Jain said.

So far this year, FPIs have put in just Rs 641 crore in equities and withdrew nearly Rs 30,000 crore from the debt market.

MORE WILL UPDATE SOON!!

Nifty to consolidate in expiry week; 3 stocks which could give 9-11% return in 1 month

We believe the markets will see a consolidation in the range of 10,500 to 10,730 levels over the next week.

 

We believe that the markets will see a consolidation in the range of 10,500 to 10,730 levels over the next week, and there could be volatility with respect to rollover movements in individual sectors/stocks and quarterly result.

Nifty 50 closed the week with marginal week-on-week gain of 10 points, and closed marginally above its crucial resistance level of 10,600-level.

The index recovered from the lows of 10,418 with broad-based positive momentum across sectors and the stocks in the last two days of the week.

The Nifty withhold the support levels of 10,440 (50 percent Fibonacci retracement of prior up-move from 9,952, to 10,929 levels).

We believe that the markets will see a consolidation in the range of 10,500 to 10,730 levels over the next week. Yes, there could be volatility with respect to rollover movements in The entire macro scenario is changing especially with respect to higher crude oil prices and weakness of rupee against Greenback.

We are witnessing stocks from energy, automobiles, cement and midcaps space which is hitting fresh lows and the correction is pretty sharp compared to the broader markets.

Defensive sectors like FMCG and IT are scaling fresh 52-week high in the current month. We would rather suggest booking profit albeit partially, in outperforming sectors.

Investors can also look to invest in beaten-down sectors/stocks, as they will converge over the next few months once the crude prices settle down in the near-term.individual sectors/stocks and quarterly results.

Declining by 7.4 percent and 6.9 percent on a month-to-date (MTD) basis, midcap and smallcap indices are trading below their long-term 200-day average, which offers an opportunity for the investors to accumulate high-quality midcap stocks at regular intervals to build a strong diversified medium-term portfolio.

Top 3-5 positional call which could give handsome returns to investors in next 1 month?

A) Here is a list of top three stocks which could give up to 11 percent return in the next 1 month:

Capital First (CMP: 557): Buy | Target: Rs 620 | Stop loss: Rs 535 | Return: 11%

The stock has retraced 61.8 percent of prior upmove (from Rs 346 to Rs 902), where its medium-term moving average worked as the key reversal point. The stock has closed at eight days high and with the sector in focus it is expected to outperform, going forward. The key technical indicators remain bullish mode, which signals strength in the stock.

Kajaria Ceramics (CMP: 549): Buy | Target: Rs 589-610 | Stop loss: Rs 515 | Return: 11%

The stock ended on a positive note after two weeks of consecutive decline, where its long-term rising trend line has supported the reversal. Convergence in RSI rise signals an overall positive trend. In case of any decline, its 200 week average will continue to work as key reversal point.

United Spirits (CMP: 3250): Buy | Target: Rs 3,550 | Stop loss: Rs 3,060 | Return: 9%

The stock reversed after taking the support of prior multiple lows and rose to 10-day closing high. Reversal in key technical indicators from their oversold zone signals a bullish trend reversal. In case of any decline, recent swing low will work as the key reversal point.

MORE WILL UPDATE SOON!!