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Share market update for week ahead: 5 things you need to know

BusinessToday.In     June 28, 2020

The benchmark equity indices - Sensex and Nifty - managed to end the week with a 1 per cent gain, even as coronavirus and India-China border tensions have kept the volatility on the higher side. While the Sensex closed at 35,171, Nifty ended the week at 10,383. The share market is up 38 per cent from the lows of March. The coming week would be watched closely by the investors due to June PMI data, auto sales numbers, coronavirus updates and development in the India-China border row.

Here are 5 things the investors would look forward to in the coming week:

Auto sales data: The data for automobile sales in June month will be released Wednesday onwards. After recording poor numbers in April and May, sales are expected to show recovery in June.

PMI data: Manufacturing Purchasing Managers' Index (PMI) data will be released on June 1, while Services PMI will be out on June 3.

India-China border row: Further updates on India-China border tensions would be watched closely by the analysts and investors.  "In the coming week, we believe global cues will continue to dictate the market trend, in the absence of any major domestic event. Besides, macroeconomic data and auto sales figures will also be on the participants' radar. Needless to say, they would continue to keep a close eye on the India-China border dispute and any news of fresh escalation might not go well with the markets," said Ajit Mishra, VP Research, Religare Broking.

Coronavirus cases: COVID-19 cases are constantly rising in the country. On Sunday, India reported 19,906 new cases to take the tally to 5,29,889, according to the Health Ministry. The experts are of the view that any steep rise in the cases would only add to the existing volatility in the markets.

FOMC minutes: The investors will also watch for the US Federal Open Market Committee Meeting (FOMC) minutes for the June 9-10 meeting. The minutes will be released on Wednesday night.

Technical insights

"The short term trend of Nifty has turned into positive, after the minor weakness from the highs. There is a possibility of further upside in the early next week and one may expect Nifty to retest the overhead resistance of 10550-600 levels in the mid to later part of the coming week. Immediate support is placed at 10280," said Nagaraj Shetti, Technical Research Analyst, HDFC.

"Markets are still going to be significantly influenced by updates on India-Sino standoff and US-Sino trade talks. While these influences might only be sentimental but if FPIs start selling, markets can really fall from the cliff as they have already bounced back 38% which statistically is a good number for markets to start drifting lower. All the positives, if any, are discounted, however any negative surprises may take markets lower. Investors are advised to be cautious, conserve cash and wait on the sidelines. Nifty50 closed the week at 10,383.00, up by 1.35%," said Jimeet Modi, Founder & CEO, SAMCO Securities.

"We see a good bounce back in a few large cap stocks, which are trading at very good support levels. Downside support for Nifty is seen at 10,200 points while upside resistance comes at 10400 level," said Sumeet Bagadia, Executive Director, Choice Broking.

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