Market would keenly observe the earnings cues that would start flowing in from next week Positive global cues following healthy macro data from the US and the assurance from the European Central Bank (ECB) that it would continue its accommodative monetary stance helped the market in India which witnessed aggressive buying by foreign institutional investors (FII) during the week ended 5th July 2013. The Indian benchmark closed higher in three of the last five trading days but the rally globally was checked ahead of the announcement of the key US non farm payroll data for the month of June. Political unrest in Egypt and Portugal also was a key overhang during the previous week. The US non farm payroll data showed that the Employers added 195,000 jobs in June, a sign of steady improvement in the job market. But this certainly would revive the concerns that the Fed will start rolling back its bond buying programme starting from September. The Indian market followed global cues during the week under review as it added 25.70 points during the full week to close at 5867.90 points on Friday. There was some long buildup in the index and stock future segment during the week gone by. But the nifty option segment indicated that the market would face severe resistance at the 5950 and 6000 levels as some call writing was witnessed at the 5900 and 6000 strike during the later part of Friday. The nifty future of the July series added 13.14 lakh shares in open interest (OI) during the week under review to take its total outstanding OI to 1.56 crore shares. The Bank nifty future of the July series added 73k shares in OI to take its total OI to 12.39 lakh shares. These were mostly fresh long build-up. Several domestic macro worries continue to haunt the domestic market as the government struggles to correct the CAD and fiscal deficits situation besides protecting the rupee and the recent clearance of the food security bill would make that effort even more challenging. So the market would look at these very issue going ahead besides the earnings cues that would start from the end of the next week. The average volume during the week under review was lower at Rs 106512.33 crore as compared to Rs 214427.33 crore during the previous week. CAPITAL MARKET !
Posted on: Sat, 06 Jul 2013 14:17:45 +0000
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