Market View for the Week June 2016
By Niveza India Pvt Ltd.
· 2016-06-15T11:18:33.000Z
Market Updates for 6-10 June 2016:: Markets would keep a close vigil on the decision on “Brexit” and the US central bank meeting. Investors will closely watch how the monsoon advances in the country. The India Meteorological Department (IMD) on Wednesday, 8 June 2016, announced the arrival of the monsoon rains in Kerala. Macroeconomic data, trends in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of the rupee against the dollar and crude oil price movement will dictate the market trend in the near term. Stock markets globally rallied as investors sensed that the major central bankers over the globe would continue to be more accommodative. Recently World Bank has cut its growth projection for the world economy. Last week, weak job report out of the U.S. too supported the sentiments as investors anticipated that the U.S. Federal Reserve would delay the interest rate hike. During the end of the week, European shares edged lower on concerns over the 23 June 2016 referendum that could see Britain exit the European Union. Weak export data for the month of May out of China suggested that the external demand remains weak. Japanese economy saw annualized expansion of 1.9% for the quarter ended March 2016 higher than the initial estimates of 1.7%. Bank of Japan is meeting on 16th June a day after U.S. Federal Reserve decides if borrowing costs is to be raised. Federal Reserve Chair Jannet Yellen speeches are closely watched as they are often used to drop hints regarding future monetary policy. In the week gone by, commodities have given more than 25% return in 2016 so far. CRB made a low of 155 in 2016 and hit 196 last week. Upside in energy, especially in crude, some base metals and precious metals gave strength to the counter. Bullion counter is expected to witness its upside momentum amid safe haven buying on fears of Britain exit from Euro zone and on expectations that Fed will not hike interest rate in this week meeting. Gold can trade in the range of 29500-30700 while silver can move in the range of 39000-42000 levels in the near term. Crude oil prices can trade on a volatile path as some profit booking can be seen after the recent stunning rise on supply disruptions. New Yuan Loans, CPI of UK, Advance Retail Sales and CPI of US, FOMC Rate Decision, BOJ Basic Balance Rate, Unemployment Rate of Australia, GDP of Newzealand, Bank of England Rate Decision etc are some important events, which may give direction to the commodity markets. Stocks to watch: Talwalkars Better Value Fitness is on the upside while Bharti Airtel is on the downside. Source:: http://goo.gl/UoyAOd
About This Author
Niveza India Pvt Ltd.
Pune, India
Niveza India Pvt. Ltd. is a SEBI registered research, advisory, and financial technology firm. We have proven experience in providing one of the best performing stock picks backed by best-in-industry service and by money back guarantee. Our m360 (multibagger 360) stock picks product is based on valu…
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