The week was flattish for the markets as the markets continue to stall around the 8000 levels. ICICI Bank declared its results after market hours on Friday and which were disappointing to say the least.
1. ICICI Bank increased provisioning for NPAs and this led to a decline of 76 % in its profits. The executives of the Bank will also forgo bonuses for the year. Steel, power and cement sectors could have more NPAs.
2. The ICICI Bank results underline the fact that the Indian economy is not out of the woods and the financial sector could face more stress.
3. Bank of Japan refused to extend Fresh Stimulus to the markets and that will lead to less hot money pumping up emerging markets like India.
4. The FIIs were net buyers of only about 3000 crores compared to 24000 crores in the month of March 2016.
5. It will take some very strong news to take the markets above 8000. The Parliament is in session only the next week and GST bill does not seem to be on the agenda.
6. Technically, 7950-8000 remain very strong resistances and supports are at 7400-7500 followed by 7250.
7. There are some very good IPOs in the market with Parag Foods coming in the first week of May.
8. The Election Results in May could provide some direction to the markets. The similarities are eerie. In May 2004, 2006, the markets corrected in May on the back of election results and there was no correction in the month of March like this year.
1. ICICI Bank increased provisioning for NPAs and this led to a decline of 76 % in its profits. The executives of the Bank will also forgo bonuses for the year. Steel, power and cement sectors could have more NPAs.
2. The ICICI Bank results underline the fact that the Indian economy is not out of the woods and the financial sector could face more stress.
3. Bank of Japan refused to extend Fresh Stimulus to the markets and that will lead to less hot money pumping up emerging markets like India.
4. The FIIs were net buyers of only about 3000 crores compared to 24000 crores in the month of March 2016.
5. It will take some very strong news to take the markets above 8000. The Parliament is in session only the next week and GST bill does not seem to be on the agenda.
6. Technically, 7950-8000 remain very strong resistances and supports are at 7400-7500 followed by 7250.
7. There are some very good IPOs in the market with Parag Foods coming in the first week of May.
8. The Election Results in May could provide some direction to the markets. The similarities are eerie. In May 2004, 2006, the markets corrected in May on the back of election results and there was no correction in the month of March like this year.
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