Weekly Outlook (February 08, 2016 – February 12, 2016)
Nifty weekly performance (February 01, 2016 – February 05, 2016):
Indian equity market at the initial start of the week witnessed weakness, sharp decline was noticed after RBI decided to keep key repo rate unchanged at 6.75%,saying it would want to wait for more inflation data and the Union Budget before taking action. On the technical front Nifty witnessed a volatile trading week while there was some amount of short covering at the end of
the week but though closed in red with a decline of 0.98%.
Nifty Prediction for Week (February 01, 2016 – February 05, 2016) :
Resistance for the index lies in the zone of 7550 to 7600 where the index has broken down from the double bottom pattern. If the index manages to close above this levels then the index can move to the levels of 7650 to 7700.
Broad range for the week is seen from 7350 on downside to 7750 on upside.
Weekly News and Highlights:
1) China's factory activity skidded to a three-year low point during the month of January. The official purchasing managers' index (PMI) stood at 49.4 in January compared 49.7 last month. This was as the sixth straight month of contraction. The January official non-manufacturing purchasing manager's index came in at 53.5, versus 54.4 in December. Lower PMI Brings More Trouble for China.
2) The latest US jobs data showed a slowdown in employment in January. The US Labour Department reported that nonfarm payrolls increased by a seasonally adjusted 1,51,000 during the month of January. This was well below the forecasts of 1,90,000. However, despite the expected slowdown in job growth, the unemployment rate fell to 4.9% during January. This was recorded as the lowest since February 2008.
3) Britain's dominant service sector recorded another month of solid activity in January. The Markit/CIPS services sector purchasing managers index for January rose slightly to 55.6, up from 55.5 in December.
India:
4) During the week, it was reported that the government is going to infuse about Rs 50 billion into the public sector banks this fiscal to strengthen the balance sheets of the banks. This will happen when Parliament approves third Supplementary Demand for Grants in the upcoming Budget session. As per the blueprint, PSU banks will get Rs 250 billion this fiscal and also in the next fiscal. Besides that, Rs 100 billion each would be infused in 2017-18 and 2018-19. Of the Rs 250 billion earmarked for 2015-16, the government has pumped in about Rs 200 billion in 13 public sector banks so far.
5) In other news, the government has finalised a policy for the auction of Coal India contracts to unregulated sectors such as steel and cement. Under this new initiative, the private steel and cement firms will have to indicate their coal requirements and their end-use projects to the coal ministry before bidding for supply from Coal India. As per the mechanism, separate bidding will be held" for cement, iron and steel, aluminum and fertilizer plants. Coal secretary Anil Swarup said that the auction process will be set moving in the next 7-10 days and the auction is expected to begin in three months. The framework will attempt to make coal available in a fair manner to end users.
Recommendations Techno Funda Picks :
Indian equity market at the initial start of the week witnessed weakness, sharp decline was noticed after RBI decided to keep key repo rate unchanged at 6.75%,saying it would want to wait for more inflation data and the Union Budget before taking action. On the technical front Nifty witnessed a volatile trading week while there was some amount of short covering at the end of
the week but though closed in red with a decline of 0.98%.
Nifty Prediction for Week (February 01, 2016 – February 05, 2016) :
Resistance for the index lies in the zone of 7550 to 7600 where the index has broken down from the double bottom pattern. If the index manages to close above this levels then the index can move to the levels of 7650 to 7700.
Broad range for the week is seen from 7350 on downside to 7750 on upside.
Weekly News and Highlights:
1) China's factory activity skidded to a three-year low point during the month of January. The official purchasing managers' index (PMI) stood at 49.4 in January compared 49.7 last month. This was as the sixth straight month of contraction. The January official non-manufacturing purchasing manager's index came in at 53.5, versus 54.4 in December. Lower PMI Brings More Trouble for China.
2) The latest US jobs data showed a slowdown in employment in January. The US Labour Department reported that nonfarm payrolls increased by a seasonally adjusted 1,51,000 during the month of January. This was well below the forecasts of 1,90,000. However, despite the expected slowdown in job growth, the unemployment rate fell to 4.9% during January. This was recorded as the lowest since February 2008.
3) Britain's dominant service sector recorded another month of solid activity in January. The Markit/CIPS services sector purchasing managers index for January rose slightly to 55.6, up from 55.5 in December.
India:
4) During the week, it was reported that the government is going to infuse about Rs 50 billion into the public sector banks this fiscal to strengthen the balance sheets of the banks. This will happen when Parliament approves third Supplementary Demand for Grants in the upcoming Budget session. As per the blueprint, PSU banks will get Rs 250 billion this fiscal and also in the next fiscal. Besides that, Rs 100 billion each would be infused in 2017-18 and 2018-19. Of the Rs 250 billion earmarked for 2015-16, the government has pumped in about Rs 200 billion in 13 public sector banks so far.
5) In other news, the government has finalised a policy for the auction of Coal India contracts to unregulated sectors such as steel and cement. Under this new initiative, the private steel and cement firms will have to indicate their coal requirements and their end-use projects to the coal ministry before bidding for supply from Coal India. As per the mechanism, separate bidding will be held" for cement, iron and steel, aluminum and fertilizer plants. Coal secretary Anil Swarup said that the auction process will be set moving in the next 7-10 days and the auction is expected to begin in three months. The framework will attempt to make coal available in a fair manner to end users.
Recommendations Techno Funda Picks :
| STOCK | Rec Date | Rec Price | CMP | SL | Return | Remarks |
| MINDTREE | 08-Feb-16 | 1538.75 | 1538.75 | 1,488.00 | - | |
| YesBank | 01-Feb-16 | 746.8 | 777.05 | 714.00 | 3.89 | |
| RAJESHEXPO | 25-Jan-16 | 714.55 | 725 | 694.00 | 1.44 | Exit |
| WIPRO | 01-Feb-16 | 562.8 | 558 | 547.00 | -0.86 | Exit |
Rec Price = Re-commanded Price , Rec Date - Re-commanded Date, CMP = Current Market Price , SL = Stop Loss
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The strategy may not be suitable for you.You may take independent decision at your own risk.
The strategy may not be suitable for you.You may take independent decision at your own risk.
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