InvestorQ : What are the major weekly stock market cues that you see for the next week starting on 10th October?
manisha Kolvenkar made post

What are the major weekly stock market cues that you see for the next week starting on 10th October?

diksha shah answered.
2 months ago

Here are some of the major cues to watch out for in the coming week starting on 10th of October 2022.

a) Nifty closed the week with +1.29% gains as markets gradually adjusted to the rate hikes with focus on defensives and domestic sectoral plays. The mid cap index was more aggressive with Mid-cap index up +2.41% for the week and small cap up +2.89%. There was a lot of alpha hunting visible and that is likely to sustain in this week too.

b) Major large cap results for the week include TCS, HCL Tech, Wipro, Infosys, HDFC Bank Mindtree, Shree Cements, Bajaj Auto, D-Mart. Among mid cap results, big numbers to watch out for are Delta Corporation, Sterling & Wilson, Anand Rathi Wealth, Cyient, Angel One, Federal Bank, Tata Elxsi, ICICI Pru and LTI.

c) Rupee weakened to 82.7/$ on Friday on the back of Indian bonds not being included in JPM bond indices and the unwinding of bonds could put pressure on the INR. To add to the INR woes, oil spiked after the supply cut of 2 million bpd plus OPEC Plus last week. Brent rallied from $88/bbl to $98/bbl and the bullish movement is likely to continue.

d) FPIs saw $300 m equity inflow and $360 million debt outflow last week. With limited IPO action next week, FPI flows could still be muted. On the IPO front, the IPO of Tracxn Technologies opens for subscription on 10th October, after EMI was subscribed 71.93X.

e) In big US data flows, the all-important FOMC minutes will be out on Wednesday and the US consumer inflation will also dominate global sentiments. On Inflation front, the US markets will hope for lower inflation, but tone of minutes is likely to stay hawkish in the aftermath of very strong labour data in the US and joblessness falling 20 bps to 3.5%.

f) CPI inflation to be put out on 12th October Wednesday and WPI Inflation will be out on 14th October, Friday. The CPI inflation is expected to widen 30 bps to 7.3% on the back of food prices for Sep 2022. However, the WPI inflation is expected to narrow 100 bps to 11.50% for the same month. The divergence in CPI and WPI may continue for now.

g) IIP growth is once again likely to weaken further for Aug 2022 from 2.4% to 1.7% on the back of weak exports in the middle of global recession fears and tepid demand. That is also evident in the early indications of trade deficit which is expected to stay constant at $27 billion. This concern is exacerbated by the forex reserves falling below $530 billion.

h) Key data points from US markets include Core CPI, PPI, FOMC member speak, Retail sales, CB Job Trends, API crude stocks, jobless claims, real earnings. For rest of the world markets, key data points include EU Lane speak, IIP, Trade balance; Japan Current A/C, core machinery orders, PPI; China CPI, PPI, Trade.