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LIC listing, wholesale inflation will give cues to mkt next week: Samco Securities

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New Delhi, May 13 (Ajitweekly News) As the result season approaches its climax, Dalal Street will move in sync with global news flow as India’s WPI data will be released and the much-anticipated LIC will be listed on the exchanges next week, said brokerage house Samco Securities.

The Commerce and Industry Ministry is scheduled to release wholesale inflation data for April on Tuesday.

In absence of any positive catalysts, the benchmark equity indices are expected to remain under pressure as selling is emerging on every bounce, said Yesha Shah, Head of Equity Research, Samco Securities.

“Investors are therefore urged to remain on the sidelines since it is preferable to wait out the storm than to go bottom fishing during such turbulent phases,” Shah said.

Both the Indian and major global indices are now at oversold levels, hence an immediate rebound in the Nifty and BankNifty is highly possible.

“Based on how the Nifty opens next week, highly aggressive traders may initiate long trades with a strict stop loss right below 15,700.”

Sensex closed at 52,794 points, down 137 points or 0.3 per cent, whereas Nifty closed at 15,782 points, down 26 points or 0.2 per cent on Friday, declining 2.7 per cent and 2.3 per cent during the entire week, respectively.

Notably, equity investors were concerned about the persistent high inflation globally and tightening monetary policy stance by several central banks. Besides, a relative weakness in rupee also dented market sentiment.

India’s retail inflation accelerated to 7.79 per cent in April due to high fuel and food costs. The inflation print remained above the tolerance limit of the central bank RBI for a fourth month in a row.

–Ajitweekly News

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