Alliance Research Weekly Report 13.08.2018

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Alliance Research
13 AUG 2018 Weekly Report
Benchmarks extend winning streak for third straight week
Extending their northward journey for third straight week, Indian equity benchmarks ended the passing week with a gain of over half a percent, with frontline gauges settling above their crucial 37,800 (Sensex) and 11,400 (Nifty) levels. Markets started the week on an optimistic note, as sentiments remained up-beat with the Confederation of Indian Industry’s (CII) statement that with the US imposing an additional 25% duty on imports worth $34 billion from China, certain Indian products may become more competitive. Key gauges witnessed consolidation on the very next day, as market participants remained cautious with president of the International Economic Association, and former chief economist at the World Bank, Kaushik Basu’s statement that in the event of US-China currency war there will be a sideline effect on India and a depreciation of the rupee, which, if managed well by policymakers, will be good for the country. Afterwards, sentiments once again turned upbeat and domestic bourses rallied for next two days to surpass their crucial 38,000 (Sensex) and 11,450 (Nifty) levels. Sentiments remained buoyed with International Monetary Fund’s (IMF) statement that India is on track to hold its position as one of the world’s fastest-growing economies as reforms start to pay off. The $2.6 trillion economy was described by Ranil Salgado, the IMF’s mission chief for India, as an elephant starting to run, with growth forecast at 7.3% in the fiscal year through March 2019 and 7.5% in the year after that. However, markets trim some of their early gains on last day of trade to end off week’s high, as investors remained cautious after data released by the India Meteorological Department (IMD) showed that 39 percent of the 681 districts in India have received less than normal rainfall in the week ended August 8.
NSE movement for the week
The Nifty surged by 68.70 or 0.60% to 11,429.50. On the National Stock Exchange (NSE), Bank Nifty was up by 428.75 points or 1.55% to 28,124.25, Nifty IT was up by 30.20 points or 0.21% to 14,679.25, Nifty Mid Cap 100 increased by 23.25 points or 0.12% to 19,135.95. On the other side, Nifty Next 50 lost 36.10 points or 0.12% to 29,867.75.
Weekly Report
Outlook for the coming week
In the passing week, Indian benchmarks ended in green terrain with Nifty and Sensex touching all-time highs but heavy selling in the last day of the trading week forced benchmarks to come-off their high levels.
In the next holiday truncated week, on the economy front, market-men will keep an eye on the Consumer price index (CPI) data and Wholesale price index (WPI) data for the month of July which is slated to be released on August 13 and August 14 respectively.
Besides, investors would also keep a close watch on lingering trade-war concerns between the US and China in the coming week and would continue to trace the momentum of rupee.
In the last leg of earning season, markets would be eyeing earnings from big-wigs, including Coal India, Corporation Bank, Crest Ventures Dalmia Bharat, DCM Shriram Industries, IOC, NBCC, V.S.T.Tillers Tractors, Vikas Wsp, Abbott India, Auro Laboratories, Binani Industries, Cadila Healthcare, Care Ratings, Eros International Media, IL&FS Transportation Networks, Oil India, Sadbhav Engineering, Cox & Kings, D B Realty, Fortis Healthcare, GMR Infrastructure, IDBI Bank, J.R.Foods, NLC India, SSWL, Sun Pharmaceutical Industries, Suven Life Sciences among others.
On the global front, market-participants would watch key macro-economic data from US starting from Import and Export Prices and Redbook on August 14, followed by Retail Sales, Productivity and Costs, Industrial Production, Business Inventories and Housing Market Index on August 15, Housing Starts, Jobless Claims, Fed Balance Sheet and Money Supply on August 14, and finally Consumer Sentiment, Leading Indicators and Baker-Hughes Rig Count on August 16.
Weekly Report
Technical viewpoints
During the week, CNX Nifty touched the highest level of 11,495.20 on August 9 and lowest level of 11,359.70 on August 7. On the last trading day, the Nifty closed at 11,429.50 with weekly gain of 68.70 points or 0.60 percent. For the coming week, 11,361.07 followed by 11,292.63 are likely to be good support levels for the Nifty, while the index may face resistance at 11,496.57 and further at 11,563.63 levels.
 
Weekly Report
Disclaimer
 
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