Saturday, September 24, 2016

THE WEEK AHEAD

Market may remain volatile ahead of near month F&O expiry


Trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.

Investors will continue to track the progress of monsoon rains. The India Meteorological Department (IMD) in its weekly monsoon update issued on 22 September 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon has so far upto 21 September 2016 been 5% below long period average (LPA).

Shares of interest rate sensitive sectors may see some action ahead of the monetary policy. The Reserve Bank of India (RBI) will unveil fourth bi-monthly monetary policy statement for the year ending March 2017 on 4 October 2016.

On the global front, US New Home Sales data for August 2016 will be unveiled on Monday, 26 September 2016. US CB Consumer Confidence data for September 2016 will be unveiled on Tuesday, 27 September 2016.

US Gross Domestic Product (GDP) data for the second quarter (Q2) (QoQ) will be unveiled on Thursday, 29 September 2016. US Pending Home Sales data for August 2016 will be unveiled on Thursday, 29 September 2016.

UK GDP data for the second quarter (Q2) will be unveiled on Friday, 30 September 2016.

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