Market next week: The domestic market in the coming week is likely to become critical due to multiple triggers, including the US Fed’s FOMC (Federal Open Market Committee) meeting and a special monetary policy meeting convened by the Reserve Bank of India, analysts said in their expectations.
Other factors that could affect markets next week include second-quarter earnings, auto sales, the flow of foreign investors, currencies and crude oil movements, analysts expect.
“We have two major events, the US Fed meeting and a special MPC meeting for the monetary policy review scheduled during the week. In addition, key high-frequency data, such as October car sales figures, will also be the focus,” said Ajit Mishra, VP of Research, Religare Broking.
Similarly, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd said: “The market will also be eyeing the unscheduled RBI MPC meeting. We are on our way to the final batch of Q2 gains, which will lead to stock-specific moves. October car sales will be important because they tell us about the demand for festivals.”
Apart from this, institutional flows will play a vital role as foreign investors have moved from sellers to buyers, while domestic institutional investors are also expressing their participation positively, Senior Technical Analyst, Swastika Investmart also said in his commentary.
As the earnings season gains momentum, prominent names such as Bharti Airtel, Larsen and Toubro, Tata Steel, Sun Pharma, Hero MotoCorp, HDFC, Cipla and Titan will reveal their numbers, along with several others, Religare Broking’s market expert said. his comments.
Indian markets have gradually risen, but a mixed trend in the index’s heavyweights is keeping momentum in check.
Technically, the benchmark index Nifty50 can maintain its positive tone until it manages to hold 17,400 and inches gradually toward the 18,100+ zone, Mishra expects. “We believe the banking sector can take a breather around its record high and other sectors will fall in on a rotational basis.”
The VP – Research at Religare Broking also advised, “Traders should continue with the ‘buy on dips’ approach with a focus on nightly risk management.”
“Looking at the derivatives data, FIIs start the November series with 57 percent long positions in index futures. The put-call ratio is 1.23. In general, derivatives indicate a neutral to positive bias, but the market will not have the support of short-covering,” Gour said.
Markets extended the recovery in a short break this week, rising more than one percent amid mixed signals. It started off on a strong footing during the special Muhurat Trading session, but a mixed trend in the index majors capped the move in the following sessions.
Finally, the Nifty index closed at 17,786.80 and Sensex at 59,959.85. Under the sector package, auto, metals, energy and real estate posted decent gains, while FMCG and IT traded subdued. Meanwhile, broader indices were trading mixed as mid-caps finished up one percent and small-caps remained broadly flat.