InvestorQ : Can you outline some of the key items to watch out for in the coming week from 31 October to 04 November which could impact the stock market action?
Niti Shenoi made post

Can you outline some of the key items to watch out for in the coming week from 31 October to 04 November which could impact the stock market action?

diksha shah answered.
4 weeks ago

How will the markets react overall in the week. Here are some of the key market signals that will have an impact on the direction of the market during the week to 04th November.

a) In terms of indices, the Nifty closed +1.20% higher while the mid-cap index and small cap index closed +1.01% and +0.20% higher respectively. While the focus could gradually shift back to the mid-caps, the index stocks are likely to see a mix of buying on dips as well as short covering amidst greater clarity emerging in the markets overall.

b) Among key quarterly results, the large cap numbers include Bharti Airtel, L&T, Tata Steel, Sun Pharma, Hero Moto, Titan, Cipla and HDFC for the week. Mid cap focus will be on results of LGB, GHCL, Data Patterns, Karnataka Bank, Dhanuka, Gravita, SIS, Balmer, Hester Bio. In addition, markets will react positively to weekend numbers from Maruti and Reddy Labs and negatively to the weekend numbers of IOCL and NTPC.

c) The week will belong to the central banks. Firstly, the Fed statement will be issued following the FOMC meeting on 02nd Nov, with 75 bps rate hike looking inevitable. More interesting will be the RBI MPC special meeting on 03rd November. Apart from the inflation policy evaluation, it is also likely to react to the US Fed statement.

d) IPOs are back in focus this week. A total of 4 IPOs open for subscription this week viz. DCX Systems, Fusion Microfinance, Bikaji Foods and Global Health (Medanta). There are another 3-4 IPOs likely to open the week after that. Focus will be on 2 recent digital IPOs; Nykee and Delhivery that lost over 25% in the previous week.

e) With oil prices stabilizing at $93-96/bbl levels, the rupee is likely to get some respite with 83/$ being the immediate support. FPIs net sold Rs1,586 crore in equities so far in October 2022 and the reduction in the pressure has come from IPO anchor flows. This is likely to keep the Nifty in the range of 17,500 to 18,000 band with a general buy-on-dips approach due to the VIX staying subdued around the 16.4 levels.

f) Finally, the big data points for the week. For India, the big data points would include core sector growth, PMI growth, forex reserves and fiscal deficit. Overall, there is likely to be a fall in high frequency growth momentum and in forex import cover. Major US market cues would be the PMI, ISM, JOLTS data, Fed Statement, exports, imports, jobless claims, factory orders and non-farm payrolls. For other markets, key cues include EU CPI, GDP ECB speak; Japan IIP, retail sales, Monetary Policy Minutes; China PMI; UK HPI, PMI, Bank of England MPC vote.