INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity market ended with strong gains on Friday, aided by a recovery in the rupee and softening crude oil prices
The SP BSE Sensex gained 262 points to close at 34,925, while the 50-share pack of NSE closed above the crucial 10,600 level at 10,605, up
91 points or 0.87 per cent.
On a weekly basis, the 50-share pack gained 0.08 per cent while the 30-share Sensex added 0.21 per cent
Advisory, Sharekhan by BNP Paribas.
Going into the FO expiry week, analysts expect the market to turn rangebound amid mixed global cues,
including oil price movement and developments around the US-North Korea summit.
Here's a look at the key developments that may steer the
market in the coming week - GDP data: The GDP data for the period of January-March, 2018 is scheduled to be released on Thursday, May 31
construction, and an expansion in agriculture.
Earnings: In the last leg of Q4 earnings, NTPC, NMDC and Oil India are slated to release
their March quarter results on Monday, May 28, 2018 while BPCL and Coal India are expected to unveil theirs on May 29, 2018.
FO expiry:
Trading could be volatile next week as traders will roll over positions in the FO segment from the near month May 2018 series to June 2018
The May 2018 FO contracts will expire on Thursday, May 31, 2018.
Rupee: The domestic unit has declined more than 6 per cent against the US
dollar this year, thus becoming Asia's worst performing currency
Simmering crude prices, continued selling of Indian equities by FIIs and jitters around Fed policy tightening have broken the back of the
"While the Reserve Bank of India might be loath to use interest rate rises as its main currency defence mechanism, as it did during 2013,
coming weeks will show how far it can go with spending precious dollar reserves to stop the rupee heading for 70 per dollar," Reuters said
On Friday, the currency made a terrific comeback as it clocked best single-day rise since March 14, 2017 to end at 67.78, up 56 paise.
Auto
stocks: Shares of auto companies are likely to hog limelight, as the firms will start releasing their sales numbers for May from June 1
Robust domestic demand, along with a rise in exports led major automobile manufacturers to post healthy sales figures for April 2018
Maruti Suzuki India reported a 14.4 per cent rise in overall sales while Hyundai Motor India's overall sales rose six per cent to 59,744
units from 56,368 units sold in the corresponding month of 2017, IANS reported
Automobile giant Tata Motors' domestic sales grew by 86 per cent for April 2018.
Technical factors: The Nifty50 on Friday formed a solid
bullish candle on the daily chart and a Dragon Fly Doji on the weekly chart
Chandan Taparia of Motilal Oswal Securities said a big bullish candle on the daily chart, followed by a Dragon Fly Doji on the weekly chart,
suggests buying at lower levels
He expects the index to move towards the 10,680 level in the short term
On the downside, support is seen at 10,550 level, Taparia said
Though it will be too early to conclude that a bottom is in place at the recent low, the same will be confirmed only if the Nifty50 gets
past the 10,929 mark in next four sessions, which would also coincide with the current month FO expiry, experts said.
Macro data: The
government will release data for India's manufacturing sector in May 2018 on June 1, 2018
US non-farm payrolls data and US unemployment rate data for May 2018 will be released on June 1, 2018
The nonfarm payrolls increased by 164,000 in April against 192,000 jobs expected
However, the unemployment rate fell to 3.9 per cent in April, an 18-year low.
