After a long weekend, Indian markets are expected to start a new week with a positive note on the global context. But, analysts say, there is a risk of selling pressure at higher levels as Indian markets underperform global peers where the near-term texture has changed to ‘sell higher’ from ‘buy’. on the decline “.
India’s Sensex and Nifty stock indexes managed to gain more than 1% last week, giving participants some breathing space after two weeks of decline. Favorable global indices combined with optimistic GST collection figures raised sentiment. A mixed trend was observed on the sector front where real estate posted phenomenal gains of 10%. The larger indices also rebounded and gained in the range of 2.5% to 3.2%.
“Over the coming week, participants will be keeping a close eye on macroeconomic data, namely IPI and CPI inflation from November 12. We will see noticeable pull in the primary market as well as the Paytm’s IPO on Nov. 8, ”Ajit said. Mishra, VP Religare Broking Research.
Paytm, Sapphire Foods India and Latent View Analytics set to launch IPOs this week to collectively mop up ??21,000 crores.
On the earnings front, some of the top companies like Aurobindo Pharma, Britannia, BHEL, IGL, M&M, Berger Paint, Pidilite, ONGC and Tata Steel will announce their results along with several others.
“The indications are in favor of further consolidation in the Indian markets. However, the range could be wider next week. On the downside, Nifty would find support around 17,750 to 17,600 levels. If there is a rebound, resistance remains intact in the 18,000-18,100 area. In the midst of it all, we still see noticeable action from both sides, so participants need to stay focused on stock picking and stock management. risks overnight, ”says Ajit Mishra, vice president of research. Religare Broking.
Markets will remain busy dealing with global macro numbers where the US inflation numbers which are expected on November 10 will be the most critical while China also announces its inflation numbers on the same day. Domestically, we will have our IIP numbers on November 12th.
“The behavior of the FIIs will be the most critical element from here as they continuously sell and if they stay in their current mood we can expect the fix to see a further expansion,” said Santosh Meena, Research Manager, Swastika Investmart Ltd.
“If we talk about derivatives data, the long exposure of the IFIs on the index futures stands at 53% while the buy-to-sell ratio is trading at 1.08, which is neutral for the market. . If we look at the interest distribution open for the November 11 expiration, it is very broad between 17,000-18,000. However, 18,000 is immediate and strong resistance, ”he adds.
Global equity markets hit new highs on Friday, posting a week of solid gains following a strong US jobs report.
Technically, “Nifty is living up to its 50-DMA but the short term texture is weak where 18000-18200 is a critical resistance area where we can see selling pressure again while if Nifty manages to get out that area then we can say that the correction is complete and the market is ready for further expansion. On the downside, if Nifty slips below its 50-DMA rise which may coincide with the 17700 level, we can expect further weakness towards the bottom. area 17450-17250, ”said Santosh Meena, research manager, Swastika Investmart Ltd.
“Nifty Bank is trying to meet its 20-DMA on a close-out basis, but 40500-41000 is a critical supply area in a downturn and if it manages to maintain itself above the 41000 level, it may lose. again start to show strong bullish momentum. On the downside, 39000 is immediate support while 38500 will remain sacrosanct support, ”he adds.
Never miss a story! Stay connected and informed with Mint. Download our app now !!