The coming week is expected to be full of triggers for the Indian markets as on one hand all eyes are sure to be fixed on how the rupee behaves, at the same time the June Import- Export numbers are sure to have an impact on the bourses.
Also with Infosys kicking off the results season with the announcement of its April- June quarter results on July 12, expectations for the next five days are on the positive side. Stock markets for the second consecutive week last week extended gains on hopes of further economic reforms and above-average Monsoon and shares of FMCG, healthcare and auto sectors firmed up on good buying enquiries.
With strong buying evident all through last Friday’s session in US markets especially after the release of June Jobs Data which was much above the expectation of street, experts believe that the resultant spurt seen in Dow Jones and S&P Index, should give good cues to the Indian markets to follow in the coming week.
In this scenario, The Pioneer gathered views from market experts in order to try and understand what can be expected from the market in the coming week. Ravi Rastogi from Globe Capital believes that rupee movement will have a huge impact on the markets in the coming weak. Also investors are going to keep a close watch on the import-export numbers.
The defence sector, according to him, is expected to be among the better performing sectors in the market. Fortune Fiscal’s Jagdish Thakkar expects a good opening on Monday but going forward in the week he said that pressure will be seen. According to him, current account deficit numbers will have the most impact and will decide the direction of the markets. He believes that short covering can be expected in Technology, Banking and Oil & Gas sectors in the coming week.
A contrarian view though came from Purpleline Investments’ P K Agarwal, who felt that markets will have a strong start but going forward, pressure will start building up from the middle of the week. He added that it is best to be stock specific in the current markets and in terms of sectors to watch out for, felt that Pharma and FMCG sectors can perform. All the experts were unanimous on one thing and that was the forthcoming Infosys quarterly results, which they felt, would not be too growth centric.
On the other hand, technical analysts believe that Nifty will carry the positive momentum set by US markets. Rakesh Bansal from RK Global says, “5950 is a critical level for Nifty and if it crosses this level, investor should start buying. While 5800 will act as an important support levels in the coming week and short covering might also be seen in Banking sector.”