Dalal Street Week Ahead | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

Dalal Street Week Ahead:

1. FIIs bought for more than 3000 crores in the last one week.
2. But after the market hours on Friday, IIP data came at 0.6% which was much lower than expected 2.5%.
3. On Monday Inflation data will be released, according to a source based information, Inflation data will be good and it will be positive for banking stocks.
4. Also there is no agreement on Debt. ceiling issue over the weekend in US.
5. Also IndusInd Bank will declare its result on Monday during market hours which will have some impact on private sector banks and consequently in Bank Nifty.
6. So Monday market will also be volatile due to some positive and some negative triggers.
7. Also next week is a truncated week as Wednesday is a holiday.
8. Once US Debt. issue is resolved, volatility will fall further and option sellers will be happy.
9. Due to US Govt. shutdown, there won't be many data that would come out of US.
10. Monday evening Reliance results, it is expected to be good. Since Reliance is an index heavyweight, it will have some impact in market on Tuesday.
11. Also HDFC Bank will declare results on Tuesday, so Banking stocks are the ones to watch out next week.
12. Wednesday is a holiday.
13. Thursday markets will be highly volatile if there is no agreement by then in US. Thursday is the last day to reach agreement, otherwise trouble will start begin from Friday.
14. By Friday morning, US Debt. ceiling issue will be clear. So our market will react to that news. 
15. So generally, FII flows, Inflation data and most importantly US Debt. ceiling issue will decide the market movements next week and it is likely to be highly volatile as in the recent past.