Indian equities are likely to retreat further from their recently-hit record highs next week on profit booking, while the general elections will be the main focus as the country enters its first phase of polling. The first phase of voting for six seats in Assam and Tripura will start on Monday.
The underlying bias is slightly negative as the indices are entering a consolidation phase following the recent gains. In the hope of a Bharatiya Janata Party-led National Democratic Alliance forming the government after elections, stock indices have gained significantly over the last two months.
In March alone, National Stock Exchange's Nifty has gained 6.8%, while S&P BSE's Sensex has gained 6.0%. Nifty and Sensex had also hit record highs at 6776.75 and 22620.65 points respectively on Thursday.
On Tuesday, markets will be shut on account of Ram Navami.J.P. Morgan believes that the recent rally witnessed in the share indices on hopes of a stable government after the elections is overdone.
Yesterday, Nifty closed below the psychologically crucial 6700-mark at 6694.35, down 41.75 points or 0.6% from the previous session. Sensex ended at 22359.50, down 149.57 points or 0.7%. We expect Nifty to take support at 6620-6630 next week and peg resistance at 6760-6780. Trade data for March that will be released by commerce and industry ministry next week, will also be in focus.
Among global events, US Federal Open Market Committee will release minutes of its March 18-19 policy meeting on Wednesday.
Mid-cap stocks and small-cap stocks, on the other hand, are seen continuing their bull-run. The midcaps and small-caps are still trading at significant discounts to the historical averages.
Real estate stocks that were among the top performers Yesterday are likely to continue their positive trend into the next week.
No comments:
Post a Comment