Below is the Views On Markets ended marginally lower amid mixed cues by Mr. Ajit Mishra Vice President, Research, Religare Broking Ltd
Markets ended marginally lower amid mixed cues, taking a breather after the recent surge. It was a holiday-shortened week and a whistleblower complaint against Nifty heavyweight - Infosys’ current management dented the sentiment on the first day itself. Cues remained subdued thereafter as earnings announcements failed to trigger any major move in the index and indications were mixed from the global front too. In short, markets were largely in the consolidation mood in absence of any major event thus failed to see a decisive trend.
The coming week marks the beginning of the new month also thus participants will be eyeing important macroeconomic data viz. Core sector day and Marit Manufacturing PMI data scheduled on October 31 and November 1 respectively. Besides, the monthly sales figure of auto and cement counters will also be on their radar. The derivatives expiry is also scheduled next week so rollover and unwinding of derivatives positions will further add to the volatility. On the global front, the US Fed meet will also be closely watched by the participants.
On the earnings front, stocks like Bharti Airtel, Tata Chemicals, Tata Global Beverages, IOC, Dr. Reddy’s Laboratories, Yes Bank will announce their results during the week along with several others.
Participants will first react to the ICICI Bank result in early trade on Tuesday. Earnings have failed to trigger any major directional move so far and there’s no clear signal from the global front too. In such scenario, participants should be ideally focusing more on the risk management part as volatility may continue to dampen the sentiment. We feel banking majors, especially the private banking heavyweights have potential to push the Nifty higher however sustainability above 11,800 would be tough. In case of decline, 11,300-11,400 zone would act as support.
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