Dalal Street Week Ahead | Stocks and Commodities

March 1, 2015
Time: 12 Midnight

Dalal Street Week Ahead:

1. I am writing this report at Colombo Airport on my way to Singapore.
2. Budget has become almost a non event for markets.
3. Some Private sector banks rose and ITC fell. Other than that most stocks closed almost flat.
4. India VIX fell by more than 13% and hence the premiums of both Call and Put options.
5. Now the important event is over, markets will go for usual data like PMI, Inflation, IIP data and US unemployment data etc.
6. China Manufacturing PMI came better than expected at 49.9 but still below 50 showing that China is still in contraction mode.
7. On Monday, HSBC Manufacturing PMI data is due from India and China. Also PMI data is due from US.
8. On Wednesday, HSBC Services PMI data is due from India.
9. Other than this, FIIs interpretation of budget, reaction of Rupee levels, FII buying figure etc will decide the trend.
10. On Saturday both Nifty and Bank Nifty futures closed at a significant premium to their corresponding cash levels.
11. This shows the bullishness of the markets.
12. Nifty is likely to cross all time high in the coming week.
13. Nifty future is expected to trade between 8800 and 9200.
14. If 9200 is crossed decisively, then the next target is 9400.
15. But that is not likely to happen in the coming week.
16. Private sector Banks, Capital Goods, Infra, IT and Pharma sectors are likely to trade higher.
17. PSU stocks, particularly PSU Banks will be under pressure.