Markets to take a cue from crude oil prices
Nearly 400 companies will announce Q2 results in the coming week, of which around 350 firms will declare numbers in first two days itself.
Spooked by surge in global crude prices to 26-month highs and weakness in the rupee, markets snapped their two-week winning streak and settled lower by more than 1 per cent during the week ended.
After touching all-time highs during the early part of the week, benchmark indices Sensex and Nifty ended lower by 370 points and 143 points to close at 33,314 and 10,321 respectively.
Rising crude oil dampened sentiment on fears of pressure on fiscal deficit. It is pertinent to know that surge in global crude prices by every $1 per barrel leads to import bill rising by $1.33 billion.
Sentiment was also hit slightly after weak numbers from heavyweights such as HPCL, BHEL and Ashok Leyland.
Reports of GST rates revision for a number of products and services may prop the sentiment during early part of the week.
Nearly 400 companies will announce Q2 results in the coming week, of which around 350 firms will declare numbers in first two days itself.
In a consolidating market, expect stock specific action during next fortnight. Near-term trend will be dictated by crude oil prices, macro economic data on inflation front and Q2 results.
For the week ahead, chartists predict trading range of 33,000-33,750 and 10,200-10,475 for the benchmark indices. Support for the indices evident at 33,125-32,950 and 10,255-10,190.
Punters expect good fight from opposition in Gujarat assembly elections. With indications of polarisation on the lines of caste making the outcome slightly unpredictable, old timers advise partial profit booking.