24 October,2016 11:42 AM IST | | Alex K Mathews
A consensus on State compensations should spell good times for investors as some doubts are dispelled
Gold prices closed on a two-week high
Gold prices closed on a two-week high
The Sensex on Friday reclaimed 28000 points, after the Finance Ministry and State Govts reached a consensus on state compensations. They fixed the base year as 2015-16. The new indirect tax regime will start from April 1, 2017. The states would be compensated for any loss of revenue. The Finance Ministry has set the November 22 2016 deadline for building on all the issues. FII stayed lines most of the days, ahead of US presidential election results and concerns of a possible interest rate hike in December 2016. Nifty has support at 8473 and resistance at 8747 and 8800. If there is a major short covering then we can expect 8900 before the expiry. As the technical indicators are in positive territory, one should add long positions at lower levels, in a phased manner.
Glance at gold
Gold has strong support at $1247 per troy ounce and resistance at $1301 per troy ounce. The yellow metal's upside is capped due to the strong US dollar. The medium term outlook for gold is positive and price declines can be utilised to enter it for a long term perspective. Gold prices recovered and closed on two week highs, on news that the European Central Bank indicated that the ongoing asset purchasing programme will come to an end by December 2016. Reliance net profit rose 17.91 per cent to 7704 crore. Gross Refining Margins stood at $10.10 per barrel in Q2 September 2016, as against $10.60 per barrel in Q2 September 2015. Reliance Industries net profit fell 22.9 per cent to Rs7206 crore on 9.6 per cent increase in turnover. The result came after market hours. The increased turnover is partly due to increased volumes in refining, petrochemical and retail business.
A positive outlook
Crude oil managed to close above $50 per barrel after Russia's intention to reduce output along with OPEC counter parts. Strong dollar also put pressure on crude. The outlook is still positive, POEC decision to limit oil production to a range of 32.5 million to 33 million barrels per day as agreed by the OPEC conference held at Algeria. Crude has support at $49.79 per barrel and has strong resistance at $51.92 per barrel.
Results on radar
Prominent companies are expected to come out with results this week. There is a long list and these include Adani Power, Adani Transmission, Adani Enterprises, Axis Bank, GSFC, Idea, Green Ply, Reliance Capital, Tata Metals, Tyro care, Adani Exports, Dr. Reddy, Federal Bank, HDFC Bank, Kotak Bank, LT Finance, M&M Finance, MCX, Tinplate, ZEEL, Can Bank, Dabur, HDFC, Unilever, Hero Motors, ITC, Just Dial, Raymond, Thomas Cook, ABB, Bajaj Finance, Bajaj Fin serve, BEL, Disman Pharma, Glaxo, HCC, IOC, Maruti, MRF, PRICOL,TVS Motor, Wonderla, Bajaj Auto, Century Tex, IDFC and NTPC.
Alex K Mathews is the founder of www.thedailybrunch.com
