Saturday, December 21, 2013

MARKET OUTLOOK FOR THE NEXT WEEK 23/12/2013 TO 27/12/2013

In the coming holiday truncated week, Indian equity markets are expected to witness lot of volatility as traders will adjust position on account of expiry of derivatives contracts on December 26. Meanwhile, market will remain shut for Christmas holiday on December 25. The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month December 2013 series to January 2014 series Further, investors in the coming week will watch the CPI Index data for Agricultural Labourers/ Rural Labourers, scheduled to be released
on December 20. Additionally, investors would be eyeing the momentum of CPI-indexed bonds, which are set to be launched on December 23, and will close for subscription on December 31. The RBI will launch CPI-indexed bonds aimed at protecting the savings of retail investors from the impact of price rise.
FII’s momentum too will be closely observed during the coming week after the Federal Open Market Committee (FOMC) after a two-day monetary policy meeting on 18 December decided to trim down its US Federal Reserve's massive bond purchase programme by $10 billion a
month, starting January 2014. Global Investors would be eyeing release of macro-economic data from US economy, United States, starting from Personal Income and Outlays on December 23, followed by Durable Goods Orders and New Home Sales data on December 24, and finally the Jobless Claims data on December 26.
Fed’s gradual and conditional taper’s decision countered with RBI’s status quo stance on key policy rates worked wonders for Indian equity markets, which rallied close to two percent for the week and ended well above the crucial 21,100 (Sensex) and 6,250 (Nifty) levels respectively.
AXIS Bank will replace Jindal Steel & Power as a constituent of the S&P BSE Sensex with effect from Monday, 23 December 2013. FII inflow and trend in other global emerging markets and the movement of rupee against the dollar hold key. During the last week, CNX Nifty made a high of 6284.50 and low of 6129.95, finally closed at 6 274.25 with a weekly gain of 105.85 points.
Next week major support seen on nifty at 6175 and 6075 while it may face resistance at 6330 and 6385.
TECHNICAL LEVELS AND MAJOR EVENTS TO WATCH OUT FOR NEXT WEEK

TECHNICAL LEVELS-INDICES-EQ
NIFTY PIVOT POINT                            6230
NIFTY SUPPORT                          6175 6075 6020
NIFTY RESISTANCE                     6330 6385 6485
SENSEX PIVOT POINT                        20920
SENSEX SUPPORT                       20725 20370 20175

SENSEX RESISTANCE                  21275 21470 21825

MAJOR EVENTS FOR NEXT WEEK
23 DEC                 IMPACT OF AGRI/RURAL CPI DATA,MACRO ECO DATA FROM US
24 DEC                 US NEW HOME SALES DATA
25 DEC                 CHRISTMAS HOLIDAY
26 DEC                 US INITIAL JOBLESS CLAIMS

27 DEC                 NO MAJOR EVENTS

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