IGI Logo

Below is the Weekly Market Outlook By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets witnessed profit taking at higher levels last week, citing subdued earnings announcements and mixed global cues. The beginning was upbeat but the tone changed as participants preferred to book profits which continued till the end. The news of the vaccination drive crossing the milestone of the 1 Billion mark also failed to trigger any meaningful rebound. The selling pressure was witnessed across the board however buoyancy in the banking and financial pack capped the downside. On the benchmark front, Sensex and Nifty lost in the range of 0.8-1.2%, to close at 60,821.95 and 18,114.90 respectively. The broader markets bore the brunt of selling as both midcap and smallcap index corrected by 4.4% and 5.4% respectively.

We expect choppiness to continue due to the scheduled monthly expiry and prevailing earnings season. On the macroeconomic front, the core sector data will be released on October 29. There will be some buzz in the primary market too, with FSN E-Commerce Ventures IPO, operator of Nykaa beauty stores, opening for subscription from Oct 28. Besides, global cues especially updates related to the COVID situation will be in focus.

We have a long list of index heavyweights announcing their numbers next week. Axis Bank, Kotak Bank, Indusind Bank, Ambuja Cement, Bajaj Auto, ITC, L&T, Maruti, Cipla, Dr. Reddy, Gail, Vedanta are some of the prominent names from that list.

Markets will first react to the Reliance and ICICI Bank numbers on Monday. Going ahead, earnings will continue to dictate the market trend, in absence of any major event. On the index front, Nifty has critical support at 17,950 and its breakdown may result in a further slide towards 17,650. The recent buoyancy in the banking pack is certainly encouraging and it may play a crticial role in the rebound in the index. The 18,200-18,400 zone would act as an immediate hurdle in case of any bounce. We’re seeing sharp cuts in the broader segment so traders should prefer index majors over others. Investors, on the other hand, should utilize this phase to gradually add fundamentally sound counters.

Above views are of the author and not of the website kindly read disclaimer