The preliminary HSBC China manufacturing purchasing Managers’ Index fell to 49.6 in May compared with a final reading of 50.4 in April. The better than expected US new home sales data that stood at second highest level since the recession and the jobless claims data, were mainly offset by the Chinese data.
Also the US Federal Reserve chief’s comment to scale back the stimulus plan added to the worries. Bank of Japan has announced an immediate fund supply to cool down the government bond market after its yields rose to the highest level in 2013, due to concerns that the US Federal Reserve may scale back its stimulus effort.
This week, earnings will play an important role for the Indian markets. Tata Motors, ONGC, ABAN, Coal India, Mphasis, Colgate, ABirla NUVO, Tata Global, Everonn and GAIL are some of the important companies, which may announce their earnings. Also the F&O expiry for May 2013 will be in focus. Crude is weak on concerns of slowdown in the Eurozone and higher inventory in US Crude has support at $93.25 and $91.15. Gold is weak and tested a low at $1356, which is a strong support. Resistance will be at $1401 and $1418. In the Mid-Cap segment, investors can buy NDTV Profit, Titan, ABB, MAX India and Dabur, which are likely to move up in the short term.
Alex K Mathews is the author of Financial Services And Systems, as well as Option Trading: Bear Market Strategies published by Tata McGraw Hill. He is also the technical and derivatives research head of Geojit BNP Paribas Financial Services Ltd. The author may have a vested interest in investments he has recommended. Feel free to e-mail him at firstname.lastname@example.org. Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
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