5 factors that will chart market direction in the first week of New Year
By Rahul Oberoi
NEW DELHI: Benchmark equity indices BSE Sensex and NSE Nifty ended the final week of 2017 on a high. The 30-share BSE Sensex advanced 0.34 per cent to 34,056.83 on December 29 from 33,940.30 on December 22. Likewise, the 50-share NSE Nifty index gained 0.36 per cent to 10,530.70 from 10,493 during the same period.
Sectorwise, the BSE Realty, Metal and IT index soared 4.35 per cent, 2.83 per cent and 1.28 per cent, respectively, for the week ended December 29. On the other hand, the BSE Oil & Gas and PSU index dipped over 1 per cent each last week.
A couple of indicators including macroeconomic data, global cues, inflows from foreign as well as domestic institutional investors and movement of crude oil will drive markets next week.
Going by the talk of the town, here are the five factors that are likely to chart the direction of the market in the coming week.
Shares of auto companies will remain in focus as auto companies will start declaring monthly sales numbers for December 2017 starting from Monday.
Dalal Street will closely follow the proceedings of the ongoing winter session of Parliament. The Winter Session will end on January 5, 2018, Friday.
Markit Economics will announce the result of a monthly survey on the performance of India’s manufacturing sector in December 2017 on January 2. The Nikkei India Manufacturing Purchasing Managers’ Index had increased to 52.6 in November from 50.3 in October.
Markit Economics will also unveil the result of a monthly survey on the performance of India’s services sector in December 2017 on January 4. The Nikkei India services PMI, dipped into negative territory in November. The seasonally adjusted business activity index stood at 48.5 in November, off from 51.7 in October.
The Federal Open Market Committee will issue minutes of its last meet held in December on January 3, 2018. The US Federal Reserve had hiked rates by a quarter of a percentage point to a range of 1.25 per cent to 1.5 per cent on December 13, 2017. It was the third rate hike in 2017. US markets will remain closed on Monday on account of New Year’s Day.
The Nifty50 index closed above 10,500 on the last day of 2017 on Friday. Overall, domestic equity markets remained stable and displayed buoyant intent and ended near the high point of the day on December 29. Vaishali Parekh, Head of Technical Desk, Prabhudas Lilladher said, “Nifty at 10,530 with RSI above 63 levels implies scope for further up move. The support for the week is seen at 10,400 while resistance is seen at 10,650.”
Milan Vaishnav, Technical Analyst, Gemstone Equity Research and Advisory said, “Technically significant is that the Nifty index managed to move past 10,490 again and has re-attempted a breakout. There are chances that this resumption of up move can extend to the next trading session as well. If this happens, we will see the markets attempt to test 10,600-10,635 zones after which it may halt at the 23-month long trend-line.”
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Via:: Economic Times – Stocks