Expect A Range Bound Session
DSIJ Intelligence / 14 Nov 2014
After touching an all time high levels Indian equities witnessed some amount of consolidation yesterday. We feel the consolidation is good sign as the markets are making a strong base for another up-move going ahead. If we take a look at the macro factors that have helped the Indian equities in the past few trading sessions, one can easily find out that consistent FII inflow, better than expected IIP numbers and consistently contracting inflation as major factors. Going ahead there are hardly any immediate triggers on domestic front. One Major trigger would be the start of winter session of parliament starting from 24th November 2014. Today we expect a positive opening for the markets but then expect a range bound trading session.
After touching an all time high levels Indian equities witnessed some amount of consolidation yesterday. We feel the consolidation is good sign as the markets are making a strong base for another up-move going ahead. Yesterday the Sensex closed at 27940 (Down 68 points) and Nifty closed at 8357 (Down 25.45 points).
If we take a look at the macro factors that have helped the Indian equities in the past few trading sessions, one can easily find out that consistent FII inflow, better than expected IIP numbers and consistently contracting inflation as major factors. Today there WPI inflation numbers would be also announced. Just to quantify, FIIs have been net buyers in all trading sessions in the month of November.
Going ahead there are hardly any immediate triggers on domestic front. One Major trigger would be the start of winter session of parliament starting from 24th November 2014. There are a few important pending reforms which may be tabled in the session. The important ones like insurance and banking bills are expected to sail through this time around. Apart from that clarity on GST and DTC would also be one factor to watch out for. However the winter session is a good ten days away and hence till then markets are likely to consolidate.
As regards the US markets, leading indices remained little changed, as better-than-estimated results from Wal-Mart Stores Inc. and corporate deals overshadowed losses in small caps and energy shares. The S&P 500 rose 0.1 % to 2,039.29 to close less than one point from a record high level. The Dow Jones Industrial Average climbed 40.01 points (up 0.2 %) to 17,652.21, an all-time high. While the US markets are trading near all time high levels, the momentum has actually slowed a bit. It seems that the participants are probably trying to book profits on every rise.
Asian indices are also witnessing consolidation with Nikkei is trading marginally down by 45 points (Down 0.26%). Shanghai is also trading in red with marginal loss of 11 points or 0.45%. Hang Seng however is trading with positive bias. SGX Nifty is trading on positive note however with gains of 18 points.
As regards the Indian markets, we expect a positive opening for the markets but then expect a range bound trading session. Noticeable factor is the heavyweights like SBI, ONGC and BHEL are expected to announce quarterly results today. Hence we expect a stock specific movement today.
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