Week Ahead – Expects Nifty to Sustain Above 18k Levels ….Good quarterly Results to boost market confidence …Rally May Continue in Dalal Street

Weekly Update

· Equity benchmark witnessed second successive week of gains with a 1% advance. Sensex climbed 620 points to close at 60,687 to two-week high and completed a second successive week of gains and Nifty increased 185 points or 1.1% to settle at 18,103, the highest closing level since October 27. Gains in IT, realty and energy stocks helped indices to above 18100 level. The momentum which was lost during the week was regained as US inflation worries started fading with investors shifting their focus to good quarterly earnings, economic recovery and strong domestic macro data points.

Week Ahead

· With short spun in the next week (Holiday on Friday), markets will first react to macro data in early trade. As the result season is almost behind us, the focus will shift back to global markets for cues. At the same time, traction in primary markets will keep investors busy. Elsewhere in global markets, Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with gains. European market closed on a record high while US Market managed to recovered partially losses on account of strong quarterly result while expectations of the U.S. Fed raising interest rates earlier than expected after a surge in inflation weighed on most emerging markets this week. Among the stocks focus for next week – Auto (Tata Motor, TVS Motor), Banks & NBFC (ICICI Bank, BoB, SBI, Muthoot Finance), Metal (Tata Steel, Hindalco), Cement (ACC, JK Cement, Ramco Cement), Others like Zomato, Indian Hotel, Tata Chemical, BSE.

FIIs and DIIs Activities

· FIIs were net sellers Rs2457cr

· DIIs were net buyers Rs3976cr

Weekly – Global market Update

· US Market – Wall Street closed the week on an upbeat note after a smart recovery on Friday, brushing off data showing consumer sentiment fell to a 10-year low amid rising inflation. However, both Dow Jones and Nasdaq Index slipped over half percent each against the previous week close. The 10-year US Treasury yield rose 12 basis points to 1.58% in response to the unexpectedly high 0.9% increase in October’s consumer price index. The inflation gauge is up 6.2% year over year, the most since 1990.

· Europe – European shares were poised for their sixth weekly advance (up half percent) as the flurry of corporate earnings comes to an end, boosting positive sentiment toward risk assets and outweighing inflation concerns.

· Asian markets – Nikkei and South Korea Index gained 4% and 1.5% respectively on account of strong domestic data and impressive corporate results.

Commodity

· Oil headed for its longest run of weekly losses since March as President Joe Biden kept investors guessing about whether he’ll act to tame prices that have helped to stoke a surge in U.S. inflation, hurting consumers. Oil price declined 6% to $82/bbl against the previous week close.

· Gold is heading for its strongest weekly gain by 5% in six months at $1860/ounce after the hottest U.S. inflation print in three decades reaffirmed bullion’s allure as a safe haven from rampant price pressures.

Corporate Action

· Monday – ex-dividend – Gillette India Rs36, Bigbloc Construction stock split from Rs10 to Rs2

· Thursday – Steel Strips India – Stock split from Rs10 to Rs5

Results Calendar

· Monday – Tinplate India

Globally Economy data

· US – Retail sales, Exports & Import and Industrial Production (Tuesday), Housing Data, Mortgage Application (Wednesday), Jobless Claim (Thursday)

· Europe – France – CPI and Economy Survey, Economy Survey (Germany) – Monday. Tuesday – GDP and CPI (France), Jobless Claims (UK). Wednesday – CPI, Retail Sales and PPI. Friday – Unemployment Rate (France). Consumer Confidence and Retail sales (UK), PPI (Germany)

· Asia – China – Retail sales, New Home sales, Jobless Calims and IIP data (Monday).

· India – Export & Import and Trade Balance (Monday)

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