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Below is the Daily Market Analysis 29 October 2022 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets extended recovery in a holiday-shortened week and rose over a percent amid mixed cues. The beginning was on a strong footing on the special muhurat trading session however a mixed trend across the index majors capped movement in the following sessions. Finally, the Nifty index closed at 17,786.80; up by 1.2%.  Among the sectoral pack, auto, metal, energy and realty posted decent gains while FMCG and IT traded subdued. Meanwhile, the broader indices traded mixed wherein midcap ended higher by a percent and smallcap settled almost flat.

The coming week is going to be critical for markets for multiple reasons. We have two important events viz. US Fed meet and a special MPC monetary policy review meet scheduled during the week. Besides, important high-frequency data i.e. auto sales will also be in focus. 

As the earnings season would gain pace, prominent names like Bharti Airtel, LT, Tatasteel, Sun Pharma, Hero Motocorp, HDFC, Cipla and Titan will unveil their numbers along with several others.

Markets have been inching gradually higher however a mixed trend across the index heavyweights keeping the momentum in check. We expect Nifty to maintain the positive tone till it manages to hold 17,400 and inch gradually toward the 18,100+ zone. We feel banking might take a breather around its record high and other sectors would fill in on a rotational basis. Traders should continue with the “buy on dips” approach with a focus on overnight risk management.  

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