Negative signals for indices concern is that durable arrears will increase with the extension of the moratorium-China trade tensions are also a key factor. Ramadan holiday for markets today.
Analysts forecast that stock markets may be weak this week. Investors are worried about extending the moratorium on EMI of all bank loans until August 31. Fearing that this will increase dull arrears.
Traders are expecting banking and NBFC shares to take a loss. Technicians expect the Nifty-50 to move in the 8,850-9,200 range. Due to Eid-ul-Fitr trading on Monday, trading, this week will be limited to four days. The number of coronavirus cases and trade tensions between the US and China could affect markets.
Investors may note the January-March quarter results. Street talk says..Negative signals for indices.
Investors can focus on the results of JSW Steel, Jindal Steel, and Power and their respective companies' expectations for the future.
JSW Steel-cut its capital expenditure by 45 percent in the current fiscal year.
* Defensively we can consider IT Shares -- Increasing the use of technology in all sectors may give rise to this sector.
* Shares of cement companies may be outperforming this week as supply is limited and cement prices have risen by 10%. Reducing the repo rate by another 0.4% could also lead to demand for cement.
* Some sort of movements may appear on selected telecom shares. Bharti Airtel and Vodafone Idea are likely to take profit. Shares of parent company Reliance Industries are likely to emerge as a result of further investment into the Geo platform.
*Demand for petrol and diesel is rising due to lockdown eases. Shares of IOCL, BPCL, and HPCL can perform well. Shares of upstream companies may move on crude oil prices.
* Shares of automobile companies can move in a very low range. The sentiment could improve as the May sales figures come out. Investors are waiting for the results to be announced by TVS Motor on Thursday.
* 60% of domestic FMCG demand is based on private consumption. FMCG shares may be better off if liquidity conditions improve due to rate cuts.
* Shares of machine equipment may suffer losses. This is because orders are expected to remain stagnant for the next 2-3 quarters. The market may focus on L&T.
* In the face of uncertainties between US-China, defensive pharmaceutical shares may excel. Dr.Reddy's and Cipla's strong results can bring positives. Sun Pharma's results, which will be revealed on Wednesday, are crucial.
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