WEEKLY REPORT

                                                                                                                                                  

                                                                             DATE: 11/01/2016

TECHNICAL VIEW:

·         The upcoming week is scheduled for Q3 results coupled with domestic macro-data on industrial output and retail inflation which will be released on January 12, followed by wholesale inflation figures which will come out on Thursday.

·         Last week Markets across the world had one of their worst opening weeks ever on rising concerns of a global economic slowdown led by China and geopolitical concerns in the wake of North Korea’s nuclear test.

·         Asian markets on Monday, will react to the influential monthly US nonfarm payrolls report for December 2015 which was released on Friday, January 8, 2016.

·         Export-oriented sectors may continue to witness margin pressures. The revenue growth for commodity-oriented companies like metals and chemicals may remain tepid due to weakness in commodity prices.

·         The focus will also shift towards the ongoing pre-budget discussions between the finance ministry and industry representatives.

·         The data on inflation based on the consumer price index (CPI) for December 2015, is due to be announced by the government after market hours on Tuesday, January 12, 2016.

·         Stocks of public sector oil marketing companies (PSU OMCs) will be in focus as a regular fuel price review is due during the middle of the month.

·         On global front, the monetary policy committee of Bank of England will announce its decision on interest rates on Thursday, January 14, 2016.

·         China releases two key macro-data points - on trade and growth rate figures for the fourth quarter of 2015.

·         Euro zone industrial production on Wednesday will give a picture of the underlying health of the slowly recovering economy.

·         Next week will also see Interest rate decisions of Central Bankers from South Korea, Chile, Poland and Serbia.

·         Last week, the global and Indian market were pulled down by the Chinese economic crisis and devaluation of the yuan. There are chances that markets might rally in the coming week on the back of specific announcements over the budgetary expectations by industry bodies.

·         The World Bank lowered its global economic growth forecast to 2.9 percent from its earlier estimate of 3.3 percent in June.

TECHNICAL VIEW:

 Nifty 50 (7601)

·         As mentioned in our early reports, we are in a downtrend channel we can see Nifty breaking its support of 7530...7550 zone.

·         If Nifty maintains below 7500 on closing basis we can see 7400... 7200 in coming days.

·         Expectation of reversal can be assumed around 7400...7200...6980.

As per our view, we saw today Nifty 50 broke 7500 and made a double bottom 7494-7495, then moved up and filled the gap made this morning..