Domestic stock indices are likely to take cues from data on India 's
inflation in June, and the Apr-Jun earnings of companies next week. Monday is
the day of the release of data on Wholesale Price Index-based inflation in
June. Fears are that the already high inflation rate has inched upward in the
month.The reading is expected to influence the Reserve Bank of India 's
first quarter policy review on Jul 31. However, see the Apr-Jun earnings of
companies having a greater impact on stocks than the inflation data.
Yesterday, the National Stock Exchange's 50-share Nifty
ended at 5227.25 points, down 8.00 points or 0.15% from Thursday, after moving
between 5216.85 and 5267.15. The BSE's Sensex closed at 17213.70 points, down
18.85 points or 0.11%. Intraday, the 30-stock index touched a low of 17182.29
and a high of 17342.88.
The Nifty is expected to trade in the range of 5200-5350
next week.The Index is now near a critical support of 5220 which is lower end of
the channel it has been trading in over the past one month...a break below
which would change the short term trend to down and the next immediate support
for the NIFTY would be between levels of 5000-5050.
Among Nifty heavyweights, Axis Bank, Bajaj Auto, Kotak
Mahindra Bank, Dr Reddy's Laboratories, Hero MotoCorp, and Reliance Industries
will detail their quarterly earnings next week. Bank of America-Merrill Lynch,
in a report Thursday, agreed that the pace of earnings downgrades is slowing
down. Bank of America-Merrill Lynch prefers stocks of companies in
pharmaceutical and rate-sensitive sectors but is wary of fast-moving consumer
goods stocks, which it finds expensive.
