Week Ahead: Quarterly results will set the trend; Some profit booking is expected in the week ahead.Nifty gained consecutive five weeks, as the momentum indicators are showing overbought zone therefore the Indian stock market may spend time in some consolidation next week. Movements are likely to be a bit range bound in next week, although a few front line stocks are expected to see some buying amid consolidation in index. Quarterly results from top companies, including State Bank of India, Oil India, Tech Mahindra, Larsen & Toubro, BHEL, Tata Steel and JSW Steel will give impact on direction of Indian market next week.
Adani Enterprises, Apollo Hospitals Enterprises, Divi's Laboratories, IFCI, Thermax, Hindustan Copper, Welcorp, TV Today, Dish TV India, Jet Airways and Spice Jet are among the other companies that will announce their quarter results next week.
We have seen heavy buying by Foreign Institutional Investors in previous five weeks which contributes significantly to the market's gains last week, The U.S. markets closed on a high on Friday (17 May) on the back of some impressive economic data, may help the Asian market start with positive note on Monday.
IT bellwether Infosys will be in focus following the Income Tax department slapping a fresh tax demand of Rs 582 crore on the company for financial year 2009. The company, which is already contesting additional income tax demands to the tune of nearly Rs 1200 crore for four fiscal years beginning 2005, has stated that it will take legal recourse against the fresh tax demand as well.
As per Nifty Hourly chart it seems that it has completed triple zig zag complex correction with indicating loosing in momentum. Break below 6140 will indicate that sideways to down trend has been started. Highest open interest in 6200 call may create hurdle for nifty on higher side. According to chart pattern rising trend line will provide resistance on higher side above 6200.
