Domestic equity markets for week failed to show any fervor despite string of good macro-economic data and both Sensex
and Nifty ended with a cut of close to half a percent. In the coming week, investors would first await the release of inflation
data based on consumer price index (agricultural laborers/rural laborers) for February 2014, which is due to be released on
March 20, 2014. The stock market will remain closed on Monday, March 17 on account of 'HOLI' festival. Investors would
also like to read into figures of corporate advance tax payment for fourth and last installment, which is extended up to
March 18, 2014 that could provide clues on the likely Q4 March 2014 corporate earnings. Besides, PSU stocks will be in
focus for the coming week as NSE on March 18 will launch the much-awaited CPSE Index in order to facilitate the
government disinvests some of its stake in as many as 10 blue-chip public sector enterprises. The 10 major CPSEs (Central
Public Sector Enterprises) that will form part of the new index include, Coal India, GAIL (India), ONGC, IOC, Bharat
Electronics, Oil India, Power Finance Corporation, Rural Electrification Corporation, Container Corporation of India and
Engineers India.
On the global front, investors would be eyeing few economic data from United States, starting from Industrial Production
data on March 17, followed by Consumer Price Index (CPI) and Housing Starts, more importantly FOMC Meeting
Announcement and Chair Press Conference on March 19, 2014, followed by Jobless Claims, Philadelphia Fed Survey and
Existing Home Sales data on March 20, 2014. Investors will also be keenly track global markets for cues from the outcome
of the US Fed's next Federal Open Market Committee (FOMC) meeting slated for 18–19 March 2014. Trend in investment by
FIIs, trend in other global emerging markets, the movement of rupee against the dollar and crude oil price movement will
also hold key. The FOMC next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the
FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. Fed's
bond-buying program has been a source of liquidity for most Asian and emerging markets over the past few years. The next
major trigger for the stock market is the outcome of the upcoming Lok Sabha elections. Lok Sabha elections will be held
between 7 April 2014 and 12 May 2014 in nine phases. The counting of votes will be take place on 16 May 2014. The term
of the current Lok Sabha expires on June 1 and the new House has to be constituted by May 31. Along with the Lok Sabha
election, Andhra Pradesh (AP), including the regions comprising Telangana, Odisha and Sikkim will go to polls to elect new
assemblies. AP, Odisha and Sikkim assemblies come to end on June 2, June 7 and May 7 respectively. With the election
code of conduct coming into force, government authorities will not be able to announce any major policy initiatives.
TECHNICAL LEVELS AND MAJOR EVENTS TO WATCH OUT FOR NEXT WEEK
TECHNICAL LEVELS-INDICES-EQ
NIFTY PIVOT POINT 6500
NIFTY SUPPORT 6437 6370 6307
NIFTY RESISTANCE 6567 6630 6697
SENSEX PIVOT POINT 21802
SENSEX SUPPORT 21581 21392 21130
SENSEX RESISTANCE 22031 22253 22482
MAJOR EVENTS FOR NEXT WEEK
17 MARCH INDUSTRIAL PROD DATA-US
18 MARCH HSG STARTS & INFLATION RATE DATA
19 MARCH CURRENT A/C DATA- US
20 MARCH JOBLESS CLAIMS & HOME SALES DATA OF US
21 MARCH NO MAJOR EVENTS
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