The CSO is slated to release macro-economic data points of IIP and CPI on January 11.Mumbai:The upcoming quarterly results season, along with release of macro-economic industrial production data and global developments on trade protectionist measures, are expected to determine trajectory of key equity indices next week.Market observers opined that other global cues such as crude oil prices, combined with direction of foreign fund flows and rupee's movement against US dollar, will also have a bearing on risk-taking appetite of investors."Investors have turned cautious ahead of corporate earnings season beginning next week, with TCS and Infosys reporting December quarter results in first round.
Going forward, market is expected to continue its volatile trade," SMC Investments Advisors CMD D.K.
Aggarwal said."Besides, developments in Winter Session of Parliament, movement of rupee against dollar and crude oil price movement will further give direction to themarket." (The Winter Session will run for just two more days on Monday and Tuesday.)The Q3 earnings result season will kick-off from next week.
IT major TCS is expected to be first bluechip firm to come out with its Q3 result on January 10 (Thursday)."The ongoing volatility may continue in near-term, due to premium valuation, slowdown in domestic economy, muted earnings growth in next two quarters and cascading effect of liquidity crunch in urban and rural markets," Geojit Financial Services Head of Research Vinod Nair said."Additionally, short-term effect of national election (in next few months), with risk of populist measures and global effect of current uncertainties may add to near term volatility.
Markets will look forward to US-China trade talks and Q3 results season starting next week."Apart from TCS, companies like Infosys, Bajaj Corp and IndusInd Bank are expected to announce their quarterly results in coming week.Besides Q3 results, investors will look out for upcoming macro-economic data points such as IIP (Index of Industrial Production).The Central Statistics Office (CSO) is slated to release macro-economic data points of IIP and CPI on January 11 (Friday).On currency front, rupee is expected to be volatile as crude and bond yields indicate pressure on local currency said Sajal Gupta, Edelweiss Securities' Head of Forex and Rates."Liquidity expansion in China can also put pressure on Asian currencies in near future..
and global slowdown worries are not moving away."The local currency strengthened during week ended January 4.
It gained 43 paise to 69.72 against US dollar from its previous week's close of 70.15.Another key theme for next week will be direction of foreign fund flows.
On a weekly basis, provisional figures from stock exchanges showed that FIIs sold stocks worth over Rs 2,000 crore in week just-ended.On technical levels, underlying trend of National Stock Exchange's Nifty50 has turned flat."Technically, with moving average and momentum readings turning flat and Nifty stuck in a range, markets could continue to remain choppy and range-bound in coming week," said Deepak Jasani, Head of Retail Research for HDFC Securities."The Nifty could broadly trade between 10,534-10,924 points levels in coming week."Last week, equity market ended lower as concerns over a global slowdown and weak domestic core industrial production data dented investors sentiments.Consequently, 30-scrip Sensitive Index (Sensex) of Bombay Stock Exchange edged lower by 381.62 points, or 1.05 per cent, to close at 35,695.10 points.Similarly, Nifty50 of NSE declined.
It went down by 132.55 points, or 1.22 per cent, to settle at 10,727.35 points.