Dalal Street Week Ahead | Stocks and Commodities

April 20, 2015
Time: 9.45 am

Dalal Street Week Ahead:

1. I could not write "Pre Market Report" for the last two days as I was held up by some other work.
2. Nifty reversed its upward movement from 8844 which was 61.8% retracement of the last fall.
3. Indus Ind Bank fell despite good results.
4. TCS fell due to bad results.
5. Markets are not expecting any good results from companies.
6. In fact that is the reason why markets are in consolidation mode since January.
7. On Friday, Reliance came out with good numbers. But that has already been factore in the share price. So upside is limited, it will find resistance at 1000.
8. Profit booking was more in Pharma stocks and Mid Cap private sector banks.
9. Axis Bank has been under performing after ICICI Bank.
10. Surprisingly, PSU Banks, Metals and Energy stocks are doing well.
11. On Friday, China brought new rules in stock market, reduction in margin funding, facilitating short sellers by change i stock lending rules. Due to this US markets fell. China market is likely to fall drastically on Monday morning.
12. That will affect the sentiment across Asia.
13. On Monday, our markets will also react to this. This bad news and FII sell figure of Rs 675 crores will make sure that our markets continue to fall for fourth day on Monday.
14. Nifty is expected to open gap down by 40 to 50 points.
15. On Tuesday, there are no important news flow. HCL Tech and Wipro will come out with results.
16. On Wednesday, Yes Bank will come out with results. Existing Home Sales data is due from US.
17. On Thursday, HDFC Bank and Cairn results are due. HSBC Manufacturing PMI data is due from China.
18. On Friday, Infosys results are due after market hours. Also agreement between Greece and Euro is a very important issue to watch.
19. Markets are likely to be under pressure in short term and stock specific action will continue.
20. PSU Banks, Energy stocks and Metals stocks will be positive. Private sector BAnks, IT and Pharma stocks are negative.
21. Nifty future is likely to retest 8500 and likely to take support in that area.
22. Resistance will be at 8850. 
23. If there are no nasty surprises from Greece or corporate results, Nifty is likely to trade between 8450 and 8850 for the next two weeks.
24. One may consider selling 8300 Put option and 8800 Call option to make some money out of time value.
25. Our markets are expected to be in consolidation mode for the next few months in the range of 8200 to 9200.