Market to take further cues from the quarterly results, volatility ahead : Amrapali Aadya

Mr. Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investment

Week ended on a positive note following the quarterly result of IT bellwether TCS along with Infosys. Another reason of IT being in limelight during week was Donald Trump's press conference in US. Additionally, positivity in power as well as metal stocks also contributed uptick in the market for the week. Falsify the impact of demonetization on Indian economy coupled with low base effect (last year November), November IIP data released on Thursday showcases smart recovery to grow by 5.7% as against contraction of 3.4% in the same month a year ago. Also, CPI inflation in December declined to 3.41% from 3.63% in the previous month added sentiments to the market.

The upcoming week is to remain more focused on the corporate events as key players in the markets like Reliance Industries, LIC Housing, Axis, Yes Bank are expected to announce their quarterly results. This quarter our eyes would be keen to analyze the quarterly results to understand the demonetization impact. Beginning of week would be with an important event i.e. GST council meeting. The Union Finance minister and state representatives will have GST council meeting on 16th January to discuss the issue of jurisdiction over assesses as well as try to reach finality on taxation of territorial waters. Further WPI data as well as bank loan growth data is also schedule to announce during the week. Reported data will help us to understand the Indian economic condition.

Indian stocks exchanges NSE & BSE reactions are unlikely remain immune from the India's largest state, Uttar Pradesh assemble election. Though, first phase of Uttar Pradesh assembly election is exactly a month away but election intricacies are very much expected to realize in the current month itself. I must say it will be the most important election since The Modi's government sweep to power in 2014. Victory of Modi government will set the tone and direction of Indian politics and also make the ground for upcoming 2019 election. Upcoming budget is also to remain an attention point for the investor to discuss in the coming week. Ever since, demonetization has come in the picture, FII have become a net seller in the market. However interestingly during the week, FII have reduced their selling significantly to sell around only Rs 1000 cr as against Rs 2000 in previous week. Summing up, we believe market to remain driven by several factors hence we can't rule out the volatility in the coming week. Going ahead, we expect market to take further cues from the quarterly results and behave accordingly. We believe infrastructure stocks to remain in focus ahead of budget.

We expect a volatile trading week ahead as traders will look for profit booking opportunity after the recent rally. Market will move in a short range between 8360 on the downside and 8450 in the higher side and gauge plenty of data scheduled to come. As budget expectations is already sky high a demonetisation beating positive show of corporate earning and smooth resolution of GST issues will shot in the arm which can take market towards a higher level breaking out the above zone. A poor show of earning will certainly trigger a great amount of profit taking on near over bought market.

Source : Equity Bulls

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