In the coming week, participants will be closely eyeing macroeconomic data. Besides, the primary market will also see a lot of traction with three IPOs hitting the market next week. Petrol and diesel rate cut and as expected US Fed decision may also impact investor sentiments.
“Indications are in favour of further consolidation; however, the range could be broader next week. Participants should maintain their focus on stock selection and overnight risk management,” said Ajit Mishra, VP Research. Religare Broking.
Below are the factors that may help steer the markets next week:
Macro data
Markets will remain busy dealing with global macro numbers where US inflation data is scheduled on November 10. China will also announce its inflation numbers on the same day. Back home, the government will also release inflation and IIP numbers during the week. Inflation is key contention for central banks across the world, and any sustained rise in it will result in rate cuts.
FPI inflow
Foreign portfolio investors (FPIs) have been bearish on India for a couple of weeks now. After withdrawing Rs 13550 crore from equities last month, they have so far pulled out Rs 4,583 crore in November as well. Any change in the stance may have a bearing on the market, and will be closely watched by investors.
Q2 earnings
On the earnings front, some of the prominent companies like Aurobindo Pharma, Sobha Britannia, BHEL, IGL, M&M, Bank of Baroda, Affle India, Oil India, Berger Paints, Pidilite Industries, ONGC, Zee Entertainment and Tata Steel will announce their results along with several others. This may trigger stock specific reactions.
IPO mart
The IPO mart will be buzzing with three scheduled issues. Along with Paytm’s parent One 97 Communications, which is the biggest ever IPO in India at Rs 18,300 crore, Latent View Analytics and Sapphire Food India will also hit the primary market during the week. Paytm’s IPO is expected to sail through given the interest but the influx of liquidity may have some impact on the secondary market, analysts suggest.
Nifty outlook
Technically, Nifty is respecting its 50-DMA however the near term texture is weak where 18,000-18,200 is a critical resistance area where we can again see selling pressure, said analysts.
“If Nifty manages to take out this zone then we can say that correction has ended and the market is ready for fresh expansion. On the downside, if Nifty slips below its rising 50-DMA that may coincide with the 17,700 level then we can expect further weakness towards the 17,450-17,250 zone,” said Santosh Meena, Head of Research, Swastika Investmart.
On the other hand, Bank Nifty is trying to respect its 20-DMA on a closing basis however 40,500-41,000 is a critical supply zone. If it manages to sustain above 41,000 levels, then it may again start to show strong bullish momentum. On the downside, 39,000 is immediate support while 38,500 will remain sacrosanct support, Meena said.
