Market participants now eyeing the magical figure of 10,000 on Nifty

The govt will announce Q4 GDP data on Wednesday and auto stocks will also be in focus this week

Markets regained momentum in the passing week and marched to the new record high, thanks to upbeat global markets and supportive local cues. In the first three days, sentiment was down largely due to escalation of cross-border tension between India and Pakistan and the news of terrorist attack in Manchester, England added to the negativity.

Amid all, the broader market witnessed severe pressure and midcap and smallcap counters were hammered badly. However, much to the participants’ relief, the benchmark index made a strong comeback in the last two sessions, taking note of recovery in the global markets and short-covering of the derivatives positions in the expiry week. Besides, encouraging earning announcements from some of the index majors also supported the recovery.

Next week is going to be equally exciting for the markets due to schedule events and data. On the macro front, the government will announce data on Q4 March 2017 gross domestic product (GDP) on Wednesday, 31 May 2017. Besides, auto stocks will be in focus as they will start reporting monthly sales figure from Thursday, 1 June 2017.

We’re now in the last leg of the earning season and some of prominent names like BPCL, L&T, Coal India, NTPC, PFC, Hindalco, M&M and Power Grid will announce their results during the week. 

Besides, the arrival of monsoon will also be closely tracked by the participants. As per the latest update from the Indian Meteorological Department (IMD), the South-West monsoon is likely to hit the South Kerala around May 30-31. 

Markets are at record high and we’re now eyeing the magical figure of ‘10000’ in Nifty. It may take a pause in between as the benchmark is making newer high for the last five consecutive months but we believe that the uptrend will continue. We’re bullish seeing noticeable buying interest on every dip and almost all the sector indices, barring pharma, are contributing to the rally.

Monsoon will dictate the trend from hereon. All in all, it’s an exciting phase for the equity markets so stay with the trend and maintain a balanced portfolio.

(Jayant Manglik is the President, Retail Distribution at Religare Securities.)