Nifty to consolidate in 5,760-6,000 range in coming weeks

BY: Vikrant shah

MUMBAI: Key benchmark indices edged higher on the last day of the week, led by index heavyweight Reliance Industries, ONGC and Infosys. IT stocks rose on growing hopes that the US lawmakers will try to reach a deal to break the budget impasse before the end of the year.

Technically, the index has been trading in a range-bound zone on account of Christmas holidays in international markets. The Nifty is expected to consolidate in the zone of 5,760-6,000 for a couple of weeks before a long move ahead. The expected target in the coming weeks is 6,160-6,200 levels. The Sensex is expected to consolidate in the range of 18,800-19,700.

For the coming week, results of monthly surveys on manufacturing & services sectors and automobile and cement sales data for December 2012 will be in focus. Auto and cement stocks will be in focus as companies from these two sectors will start unveiling monthly sales data for November 2012 from 1st January 2013.

Then we have the corporate earnings season to start and Indian companies will start unveiling Q3 results from mid-January 2013. Investors and analysts will closely watch the management commentary and based on that they would reassess their portfolio.

On the global front, investors will continue focusing on the US fiscal cliff. President Barack Obama and lawmakers are launching a last-chance round of budget talks just days before a New Year’s deadline to reach a deal or watch the economy go off a ‘fiscal cliff.’

The oil & gas sectors remained on the fore-front following reports that the government might gradually increase the diesel price next year to cut subsidies.

During the week we saw shares of three companies debut on the bourses. CARE surged on its debut while the shares of PC Jeweller logged modest gains on its debut. But Bharti Infratel was a flop show as its shares dropped on listing.

FIIs have purchased shares worth Rs 24,183.30 crore in December 2012 so far (till 27 December 2012) compared to Rs 9,577.20 crore in November 2012. So far in CY2012, FIIs have bought shares worth net Rs 1,27,455.30 crore, which is quite impressive.

(The author is CEO of Latin Manharlal Securities)