Market view for the Week

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.

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.
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