Monday, 4 January 2016

WEEKLY REPORT

                          DATE: 04/01/2016

FUNDAMENTAL VIEW:
In the upcoming week, Market is expecting a gradual rise in markets backed by greater confidence in corporate earnings in 2016-17.
Trading this week may be influenced by Purchasing Managers’ Index (PMI) data for services and manufacturing sector.
The low participation was on account of holidays for FIIs and volumes remained low.
As for stock-specific activity, aviation stocks had a great run last year and look likely to maintain gains for      the first few months of 2016.
Caution on the sector as Crude might bounce back in 2016.
Automobile companies reported decent December figures. Eicher Motors sales growth stood at 44 percent year-on-year at 5,068 units. Maruti Suzuki sales were up 8.5 percent, while M&M was up by just 4 percent. Ashok Leyland and Tata Motors are yet to announce their sales for December.
The triggers for markets are only expected from the second week for January when corporates begin announcing Q3 numbers.
Among key global data, the Caixin China manufacturing and services PMI data for December is expected this week.
The Euro zone Market PMI composite index for December is also due.
In the U S, the crucial non-farm payrolls data for the month is due on Friday.
Today, China halts stock trading for rest of the day after 7% rout triggers circuit breaker.
TECHNICAL VIEW:
Nifty is showing a formation of inverse head and shoulder and now is near is stiff resistance 
To complete the head and shoulder pattern formation, It has to come down to form the next shoulder around 7700. 
If breaks the stiff resistance zone of 7940..80..8040 and maintains with closing, we can see it going higher upto 8100..8200..8300
Nifty can face resistance 7980...8000 zone
Below 7930 maintains we can see selling to lower levels.......

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