Industrial Production data for February and CPI Inflation for March will be released on April 12 after market hours.
What a week for Indian markets. Both Sensex & Nifty eked record highs this week, ending with gains of about 0.4 percent each. The S&P BSE Sensex gained 0.49 percent while the Nifty50 gained 0.36 percent for the week ended April 5.
The index witnessed profit booking at higher levels but the trend is still intact and the Nifty should hit record highs soon. The broader market underperformed that might be of some worry.
Macro cues, poll for Assembly elections as well as earnings are some of the factors which will dictate trend in this week.
Industrial Production data for February and CPI Inflation for March will be released on April 12 after market hours.
Apart from that, the Foreign Exchange Reserve data for the week ended April 5, and Deposit and Bank Loan growth for the fortnight that ended on March 29 will be announced on the same date.
A much-awaited event, the general elections will begin with the first phase on April 11.
The voting for 91 seats in 20 states, which are Telangana, Andhra Pradesh, Assam, Arunachal Pradesh, Bihar, Jammu & Kashmir, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, Uttar Pradesh, West Bengal, Chhattisgarh, Uttarakhand, Lakshadweep and Andaman & Nicobar, will take place in first phase on April 11.
The rupee skidded 6 paise to finish at 69.23 per US dollar on Friday, largely owing to increasing demand for the greenback from importers.
On the institutional front, FPIs were net buyers in Indian equity markets for Rs 797 crore while DIIs were net sellers to the tune of Rs 325 crore, provisional data showed.
Big News:
Earnings will be the talking points this week
Most experts have expressed their confidence that earnings recovery could well start from March quarter onwards
The March quarter and full year earnings season will kick off by technology majors TCS and Infosys on April 12, Friday.
Apart from that, Delta Corp, Tata Metaliks, Tinplate Company among others will also announce their quarterly earnings in this week.
Brokerages largely expect double-digit earnings growth in Q4 FY19 driven by banks, and single-digit growth in revenue.
According to them, the banking sector is expected to show good earnings on low base while it could be steady to a good quarter for technology, capital goods, and cement sectors.
Technical View:
Nifty formed a small bodied Bullish candle on the daily scale while a Doji candle on a weekly scale which indicates that declines are being bought
It has to continue to hold above 11550 zones to witness an up move towards 11761, 11888, 12000
Profit booking could come if Nifty slips below 11550 levels
Three levels: 11550, 11638, 11689
Max Call OI: 12000, 11800
Max Put OI: 11000, 11500
Stocks in news:
The Reserve Bank of India (RBI) on Saturday said it will examine the merger proposal of Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd. The statement comes amidst report that the presence of two nominee directors of the RBI on the board of Lakshmi Vilas Bank implies the central bank's indirect approval of the proposal.
The Competition Commission of India (CCI) on April 5 approved L&T's proposed acquisition of a 66.15 percent stake in Mindtree. If you remember, L&T signed a deal to buy 20.32 percent stake of Mindtree's largest shareholder VG Siddhartha and his coffee enterprise on March 19 for close to Rs 3,200 crore at Rs 980 per share.
A day after the Reserve Bank reduced the benchmark repo rate by 25 basis points for the second consecutive time, state-run Bank of Maharashtra on Friday announced a nominal 5 bps reduction in its lending rates across various tenors.
Technical Recommendations:
We spoke to Angel Broking and here’s what they have to recommend:
UltraTech Cement: Buy| LTP: Rs 4190| Target: Rs 4610| Stop Loss: Rs 3975| Upside 10%
Tata Steel: Buy| LTP: Rs 549| Target: Rs 590| Stop Loss: Rs 526| Upside 7%
Disclaimer: The views and investment tips expressed by investment expert 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.
