The Indian market is expected to open in the green after Wall Street scaled new peaks on January 17.
Robust housing data helped US stocks touch all-time highs and with the Chinese economy showing signs of resilience, revival of the global economy is imminent.
For the week, the S&P 500 added 1.96 percent, the Dow rose 1.82 percent and the Nasdaq increased 2.29 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 31.5 points gain or 0.25 percent. The Nifty futures were trading around 12,389-level on the Singaporean Exchange.
For the week ended January 17, the S&P BSE Sensex rose 0.83 percent while the Nifty50 ended with gains of 0.78 percent.
Broader markets outperformed as the S&P BSE Midcap index was up 3.6 percent, and the S&P BSE Smallcap index ended the week with gains of 3.97 percent
As many as 123 stocks in the S&P BSE smallcap index rose 10-60 percent in the last 5 trading sessions. These include Liberty Shoes, MMTC, VIP Industries, Ramco System, Birla Corp, Simplex Infra, and Vipul.
As many as 6 stocks in the Midcap index rose 10-20 percent for the week ended January 17. These include Berger Paints, Tata Global Beverages, Hindustan Aeronautics, IGL, and Emami Ltd.
The Indian rupee opened on a cautious note and fell 7 paise to 71.00 against the greenback in early trade on Friday tracking weak opening in domestic equities and foreign fund outflows.
On the institutional front, FPIs were net buyers to the tune of Rs 264 crore, while the DIIs were net sellers to the tune of Rs 500 crore, provisional data showed.
Foreign portfolio investors (FPI) remained net buyers in the Indian capital markets in January so far despite heightened geopolitical tensions between the US–Iran and domestic economic challenges.
According to the NSDL data, a net amount of Rs 10,200 crore was invested into equities while a net Rs 8,912 crore was pulled out from the debt segment. This resulted into a net investment of Rs 1,288 crore between January 1 and 17.
As many as 26 companies will declare their results for December quarter including Kotak Mahindra Bank, Can Fin Homes, Just Dial, KEI Industries, Federal Bank, Monnet Ispat & Energy, Hindustan Zinc, HFCL, ICICI Securities, Bank of Maharashtra.
Kotak Mahindra Bank: PAT likely to grow by 28% YoY
Federal Bank: PAT likely to grow by 17% YoY
Hindustan Zinc: PAT likely to fall by 22% YoY
(All estimates are from Motilal Oswal)
Stocks in news:
HDFC Bank Q3: Profit jumped 33 percent, but asset quality weakened and provisions spiked. Profit during the quarter increased to Rs 7,416.5 crore, from Rs 5,585.85 crore in the same period last year.
TCS: Tata Consultancy Services reported tepid growth numbers for the December quarter. Its net profit was at Rs 8,118 crore, up 0.2 percent year-on-year (YoY) against Rs 8,105 crore reported in the corresponding quarter of the previous financial year.
Reliance Industries: The company reported the highest-ever quarterly consolidated net profit of Rs 11,640 crore for Q3FY20 against a CNBC-TV18 poll of Rs 11,333 crore. Its net profit jumped 13.5 percent year-on-year (YoY) against Rs 10,251 crore reported in the corresponding quarter of the previous financial year.
Nifty formed a small bullish candle on weekly charts.
Nifty50 remained listless for the entire week with a narrow range of 111 points.
The 50-stock index may come under selling pressure on a strong close below 12,300 levels in next couple of trading sessions.
In such a scenario, there is a high possibility that the near term trend may turn bearish. In this case, the initial target will be placed around 12,050 levels, suggest experts
A stable move above 12,300 shall at least ensure sideways consolidation, albeit without any proper trading opportunity on the long side.
A strong close above 12,390 can extend this rally towards 12,500 level.
For time being traders are advised to make use of weakness below 12,300 to create short positions rather than buying dip, suggest experts.
Max Call OI: 12500, 12400
Max Put OI: 12000, 12200
We spoke to Angel Broking and here’s what they have to recommend:
Alembic Pharmaceuticals | Buy | LTP: Rs 599 | Target price: Rs 690 | Stop loss: Rs 551 | Upside: 15.2%
Siemens | Buy | LTP: Rs 1,586 | Target price: Rs 1,750 | Stop loss: Rs 1,490 | Upside: 10.34%Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.