InvestorQ : How do you see trading in the Nifty and Sensex panning out on Monday 10th October 2022?
Rutuja Nigam made post

How do you see trading in the Nifty and Sensex panning out on Monday 10th October 2022?

diksha shah answered.
2 months ago

On Friday, the stock markets were relatively subdued with marginal losses on the Nifty and the Sensex. However, Monday promises to be a lot worse if you go by the global cues and the indications coming from the SGX Nifty. Early trends indicate at deep cuts and that is largely on account of the Fed hinting at another 75 bps cut in November 2022.

This is going to be a week of big data announcements in India and in the US. For instance, the US Fed minutes and consumer inflation data will be out during the week, giving the first indication of November action on rates. In the Indian data flows context, CPI inflation, WPI inflation, IIP growth and trade deficit numbers will be announced during the coming week.

FPIs turned aggressive sellers on Friday after some halting purchases during the week. There were net sellers in equities to the tune of Rs.2,251 crore as domestic funds and LIC bought stocks worth Rs.545 crore on Friday. FPIs had started the month on a positive note, but it remains to be seen if this trend continues in the market. It sounds difficult for now.

On Friday, the Dow Jones Index fell by 631 points and NASDAQ was down 421 points as markets tried to adjust and remained wary ahead of inflation and Fed minutes coming out next week. The SGX Nifty is lower by 267 points in early trades even as most of Asian and European markets were under stress. Even markets like Hong Kong and Japan have opened with early losses on Monday.

In terms of outlook for the week, it will be over to the data flows. The strong labour data has already underlined another 75 bps rate hike by the US Federal Reserve. In addition, Fed minutes and Consumer Inflation in the US will hold the key. The key local data will be the CPI inflation, which is expected to be higher. In addition, WPI inflation, trade data and IIP will also be put out. It is the data flows that will be the guide to flows this week.