25 Mar 2017 | 4:17 AM
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Equity Research Report: Market Explorer

At the current juncture, the Indian markets are trading firm on the back of strong FIIs inflow. Both major benchmark indices, BSE Sensex and the CNX Nifty, made a new record high recently and now consolidating their gains. Going ahead, Union Budget for 2014-15 is the major trigger for the market and industry in expecting friendly announcements. While striking a balance between growth and inflation would be a key priority, we don’t expect the new Govt. to deviate from the path of fiscal prudence even after taking into account the provision of tax sops to the common people.
04 Jul 2014 | 05:20 PM

Market Outlook

 

At the current juncture, the Indian markets are trading firm on the back of strong FIIs inflow. Both major benchmark indices, BSE Sensex and the CNX Nifty, made a new record high recently and now consolidating their gains. Going ahead, Union Budget for 2014-15 is the major trigger for the market and industry in expecting friendly announcements. While striking a balance between growth and inflation would be a key priority, we don’t expect the new Govt. to deviate from the path of fiscal prudence even after taking into account the provision of tax sops to the common people.

 

Technical Outlook for CNX Nifty

 

After an exceptional run up in May month, the benchmark index, Nifty, upheld its positive bias in June month as well and formed a new life-time high at 7700.05 spot. In July, we believe that Nifty would continue to uphold its northward bias but volatility will tend to remain on the higher side, due to the upcoming Union Budget. Hence, it’s advisable for the traders to keep their leveraged positions hedged. On charts, sectors which are looking very strong and robust for the coming months are: Banking, IT, Infra, Metal and Realty alongside with select Midcap counters.

 

Rollover Synopsis

 

Nifty June expiry gained by 3.5%, with strong gains technology by 7.3% and midcaps to gain by 6.8% while banking remained flat to close at same levels. Total   rollover of 79% (6m-avg 78%) and Nifty rollover was at 71% (6m-avg 62%).  The rollover cost in nifty futures traded at a premium of 35-40 points between the two months.

The sectors witnessing strong roll overs are Capital goods, Infrastructure, Metals and Realty sectors while weak rollovers were in Media, Technology, Oil-Gas and Textiles sectors. Among the individual stock with high roll overs were JSW Steel, Union Bank, Mcleod Russel and Biocon while stocks like IGL, Arvind, HDFC and GAIL had weak rollovers.