Stock exchange next week! 10 factors that could lead to action on Dalal Street in the next 5 trading days
Indian markets closed in the red on Friday for the fourth consecutive trading session. Nifty50 fell 86 points, while Sensex lost 361 points to close at 17,532 and 58,766. The benchmark Nifty closed 1.8% lower and 30-stock Sensex finished 2.1% for the week ended October 1, 2021.
Benchmarks fell for the fourth day in a row due to weakness in global indices, Binod Modi, head of strategy at Reliance Securities, told PTI. Strong selling pressure on financials (excluding PSU banks) and IT weighed on the index. However, purchases were observed at pharmaceutical, metal and power supply banks.
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Bajaj Finserv was the big loser in the Sensex pack, losing more than 3%, followed by Maruti, Bharti Airtel, Asian Paints, Bajaj Finance and HDFC. In contrast, M&M, Dr Reddy’s, UltraTech Cement and PowerGrid are among the winners. M&M, Coal India, IOC were the top winners of Nifty50, while Bajaj Finserv, Maruti and Asian Paints were the most lagging behind.
Over the past five trading days, among the NSE, Nifty CPSE, Nifty PSE, Nifty PSU Bank, Nifty Energy and Nifty Commodities indices have been the main winners, while S&P BSE Utilities, S&P CPSE, S&P BSE Power, BSE -PSU and S&P BSE The Enhanced Value remained the flagship index of BSE, following various national and global developments related to energy and the electrical space.
Weekly Market Outlook: Expert Opinion
Giving an overview of the weekly market outlook, Vinod Nair, Head of Research at Geojit Financial Services, said: “The domestic market remained in a consolidation phase throughout the week as the market lacked positive national indices. major forces to resist the negative pressure of the world markets. Concerns over the US debt ceiling crisis as well as rising yields and the price of crude oil have raised concerns in the global market. Persistent concerns about the Chinese economy also increased pressure on Asian stocks. Eurozone inflation hit a 13-year high at 3.4% in September due to high energy costs. ”
Nair said India’s basic sector output accelerated 11.6% in August from 9.9% growth in July, while the manufacturing PMI rose to 53.7 in September from 52.3 in August, due to improving demand conditions.
“Auto sales figures from major automakers showed lower sales for September, mainly due to a shortage of semiconductor supplies. However, expectations are high for the festival season. and Pharma has grown, he said.
We’ve put together a list of 10 factors that could drive the trend on D-Street over the coming week:
1. RBI Monetary Policy:
The Reserve Bank of India’s Monetary Policy Committee meeting is scheduled to take place October 6-8. In this regard, the research director of Geojit Financial Services said: The central bank should maintain its accommodative position to maintain adequate liquidity in the system and support economic activity. India’s services PMI is also expected to be released next week.
2. OPEC + meeting
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC +, are meeting on Monday. The group is slowly reversing record production cuts made last year, although sources say it plans to do more, Reuters reported. It comes as oil surged above $ 78 a barrel on Friday, in light of this week’s three-year high, supported by tight supplies due to OPEC + supply restrictions, the recovery of demand and a weaker US dollar, he said.
3. CS Hearing on Single Spectrum Charges
The Supreme Court will hear issues related to single spectrum fees on Tuesday, October 5. Earlier, to give relief, the Center had streamlined the definition of Adjusted Gross Income (AGR) to exclude non-telecom income and a four-year moratorium. on player contributions to the government.
4. Global indices
Global markets closed on a mixed note on Friday. The main Wall Street indices ended Friday’s trading session in the green. The Dow Jones Industrial Average gained 482.54 points or 1.43% to 34,326.46, the S&P 500 added 49.5 points or 1.15% to 4,357.04, while the Nasdaq Composite added 118 , 12 points, or 0.82%, at 14,566.70. It will be interesting to see how these clues open up on Monday.
On the other hand, Asian markets traded with a negative lead on the Japanese Nikkei 225, which closed on Friday at 28,771.10, down 681.59 or 2.31%, while SGX Nifty traded for the last time at 17,632.20. Meanwhile, the Chinese stock market will remain closed until October 7. The market was closed due to the Golden Week holidays. The Chinese market was also closed on Friday.
5. Technical view:
The Nifty50 closed the week ended October 1 with a loss of 1.8%. The index failed to maintain its crucial psychological support placed at 17,600 and took net support of 17,450 before rebounding. The index is trading at overbought levels and there is also the possibility of further consolidation over the coming week. The index might see some resistance around the 17800 levels while support is placed at 17450-17300.
“The crowded market can surprise us at any time and we therefore reiterate to stay light in the market. We’ve already had a glimpse of that possibility this week, but structurally nothing has been shaken yet, ”said Sameet Chavan (Chief Technical and Derivatives Analyst, Angel Broking).
“As for the levels, the upside for the coming week appears to be capped and we don’t expect the Nifty to break through the solid wall of 17800 – 17950. On the other hand, 17450 – 17300 should be considered as key supports, ”he said.
Chavan advises traders to stay light and follow strict stop losses for existing positions. We are seeing a good stock specific action in the market.
6. TCS result on October 8
IT giant Tata Consultancy Services Ltd will report results for the quarter ended September 30 on October 8. TCS is also expected to consider declaring a second interim dividend to shareholders at the board meeting scheduled for the same day. During the quarter ended June 30, 2021, the company recorded consolidated net sales of RS 45, 411 crore, while the consolidated PAT stood at Rs 9,031 crore. EBITDA for the June quarter was RS 12,663 crore.
Note: Data was compiled from Stock Edge
7. Corporate actions:
The week starting October 4 will be marked by significant corporate actions.
* Man Infraconstruction Ltd.
Man Infra management to hold meeting to discuss bonus and dividend issue on October 4
* Airtel rights issue
Bharti Airtel’s rights issue of Rs 21,000 crore will open on October 5, for which the price has been set at Rs 535 per share.
* Distribution of Affle India shares
Another major event is scheduled for October 7, the ex-date of Affle’s stock division (India). The registration date for the Affle (India) stock split is October 8. The board of directors of Affle (India) approved the stock split plan in a ratio of 1: 5 to facilitate a larger shareholder base and facilitate liquidity, the company informed in late August.
* TCS board meeting
Tata Consultancy Services Ltd’s board meeting is scheduled for October 8, when the board may consider declaring a second interim dividend to shareholders.
8. FII & DII activity on the spot market:
According to the latest data to date, Foreign Institutional Investors (FIIs) were net buyers with Rs 131.39 crore and net sellers of DII with Rs 613.08 crore in the spot market.
The rupee reversed early losses and stabilized for the day up 11 paise at 74.12 against the US dollar on Friday, despite a moderate trend in domestic stocks, PTI said. On the interbank foreign exchange market, the local unit has experienced high volatility. It opened on a negative note at 74.33 per dollar against its previous close of 74.23. It hovered between 74.11 and 74.35 per dollar during the day before ending at 74.12 against the US dollar.
10. PMI data:
The September Purchasing Managers Index (PMI) arrived around the market close on Friday. Activities in India’s manufacturing sector improved in September as companies benefited from tightening demand conditions as COVID-19 restrictions eased, PTI reported in a monthly survey citing this. The seasonally adjusted IHS Markit India Manufacturing Purchasing Managers (PMI) index improved from 52.3 in August to 53.7 in September, indicating a stronger expansion in general business conditions in the sector. This could impact the market when it opens for trading on Monday.