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Monthly Market Roundup Market Outlook: May
Going ahead, Indian equity markets upward
Indian equity markets surged on possible deep momentum will continue and factors like Q4FY17
started the month of April cuts in corporate and corporate earnings, fund inflows and key economic
on a flattish note. News individual tax rates reforms will drive the markets. Global economic
of missile attack in Syria proposed by President growth prospects, political stability in India,
by US sent shockwaves Donald Trump to stimulate improving fundamentals, implementation of key
throughout the global the US economy and lower- reforms are the factors responsible for renewed
markets, with investors than-expected tightening of interest of foreign investors. On the economic
flocking to safe assets. interest rates by the Federal data front, the US FOMC meeting which will be
In the latter half of the Reserve. scheduled on 3rd May, 2017 will impact the markets.
month, market sentiments The month finally ended Further, Japanese monetary policy meeting minutes,
improved and created with upward bias as S&P French Presidential election results, BoE Monetary
history as benchmark index BSE Sensex delivered Policy and European Central Bank (ECB) monetary
BSE Sensex closed above positive returns of 1.01% policy meeting minutes will be keenly watched
the 30,000 mark on 26 to settle at 29918.40 and by market participants. Hence, we recommend
April, 2017 for the first time Nifty50 gained 1.42% investors to adopt buy on dips strategy and invest
ever on positive news from ending the month at in fundamentally strong companies for long term
the parliament nod for the 9304.05. perspective.
GST bills, strong quarterly On the institutional side,
earnings, positive global foreign institutional Nifty Technical Outlook: May
cues, strong economic investors (FIIs) bought
fundamentals, FII inflows Rs 2,394.49 crore worth of Nifty
and an appreciating rupee. equities during the month
An impressive victory by while domestic mutual On the monthly chart, we are observing a spinning
the ruling BJP government fund houses continued top which gives small clue that the previous four
in Delhi MCD elections their buying spree with net month rally is losing breath. Hence, a consolidation
also boosted the market purchases of Rs 9,917.53 or a minor correction from current level cannot be
sentiments. crore in April 2017. ruled out. In the coming month if Nifty trades and
Further, global markets closes above 9363 level then it is likely to test 9448
– 9534 – 9633 levels. However, if Nifty trades and
Economic Data Wrap Up – April closes below 9244 level then it can test 9159 – 9074 –
8975 levels.
¡ India's Mar Nikkei ¡ India’s Mar CPI Broadly, we are of the opinion that monthly trend
manufacturing PMI rose inflation rose to 3.81% is up and at present there is no sign of weakness.
to 52.5 from 50.7 in Feb. from 3.65% in Feb. In current month 9120 holds significance. Hence,
as long as Nifty holds the mentioned level
¡ India’s Mar Nikkei ¡ India’s Mar WPI on closing basis there is high probability that
Services PMI rose to inflation fell to 5.70% markets are likely to test 9400 – 9600 levels in
51.5 from 50.3 in Feb. from 6.55% in Feb. couple of months.
¡ India’s Feb IIP growth ¡ India’s Mar trade deficit
fell to -1.2% vs 3.3% in rose to $10.44 bln from
Jan. $4.40 bln YoY.
3 ARIHANT CAPITAL ¡ MAY 2017
