The week ahead: sideways movement expected..by J Victor on August 10th, 2015
The Indian stock market closed with marginal gains last week. Both the benchmark indices were seen struggling to move past the resistances at 28,500 and 8,650 which shows the lack of conviction among market participants. One main reason for this is that the first quarter results of most of the corporates were dismal and fell below expectations. Along with the above, the pace of reforms measures taken and the overall rainfall recorded are concerns that are pulling the bulls away from the markets.
Going ahead, the Federal Reserve has announced starting of the monetary tightening from next month. Scaling down the stimulus program will impact the financial markets worldwide. But as seen from the last couple of months , Indian markets buyers are willing to invest more at lower levels and hence, even if there is a dip in near future, the markets will hold on preventing deep cuts.
We expect the markets to remain moving sideways, as seen in the last few weeks. Any drop of 10% or more must be utilized to invest more.
Key events to watch out for this week includes –
- Quarterly earnings of State Bank of India (SBI), Oil & Natural Gas Corporation (ONGC) and Coal India
- Industrial production for June
- CPI and WPI data for July
- Rupee -dollar equation and ,
- Progress of monsoon.
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