Key developments that will drive the markets this week

Let us look at the key developments this week.

Sep 27, 2021 07:09 IST India Infoline News Service

Domestic markets ended the last week with another record high led by firm global cues and positive developments on the “Evergrande” crisis. Moreover, the Fed meet outcome came largely in line with expectations wherein they hinted on rollback of the bond-buying program to start from November this year but didn’t share any specific timeline. With this, the Sensex touched a new milestone of “60,000” and Nifty also inched closer to the 18,000 mark. 

On the sectoral front, the realty index gained a whopping 21% on the back of strong sales announcements by some of the companies and upbeat prospects. It was followed by the media index which ended higher by 12% as Zee announced a merger with Sony Pictures which lifted sentiments. Amongst other sectors, IT, FMCG and Auto too ended with gains.

In the coming week, the focus will be on the monthly expiry of September month derivatives contracts and monthly auto sales, infrastructure output and Nikkei Manufacturing PMI data.

Let us look at the key developments this week.

Aditya Birla Sun AMC's to launch its IPO & Paras Defence set to debut in the stock exchange

Aditya Birla Sun Life AMC Limited, ranked as the largest non-bank affiliated AMC in India plans to open its Initial Public Offering on September 29, 2021. The price band is fixed at Rs695 to Rs712 per equity share of Aditya Birla Sun Life AMC Limited. The offer is to remain open from Wednesday, September 29, 2021, to Friday, October 1, 2021.

Paras Defence and Space Technologies will make its debut on Dalal Street in the coming week on October 1 and it was the highest among IPOs launched at least since 2007. The issue being subscribed 304 times and the final issue price is expected to be fixed at Rs175 per share, the upper end of the price band.

Macro Eco data & Auto numbers in focus

The official data on eight core sectors -- collectively known as infrastructure data (IIP) for the month of August and fiscal deficit is due this Thursday. Also, Private PMI data on manufacturing in the country and foreign exchange reserves for the week ended September 24 will be released this Friday.

FII & DII updates

According to exchange data, foreign institutional investors (FII) net purchased Indian equities worth Rs2,249cr ($306.4 million), in the last week.

Technical view

On the daily charts, the Nifty index has given a consolidation breakout, indicating a possibility of continued upward momentum. IT stocks like Infosys, TCS, Tech Mahindra, Mindtree & HCL Tech were among the top outperformers, witnessing an addition of fresh long positions during the week. FIIs index futures long/short for September hovered around 1.5x level, in the favour of the bulls.

On the options front (September 30, 2021 expiry), the Nifty 17500PE strike price has witnessed fresh writing, hinting at a formation of a floor level for the index around the mentioned strikes in the coming days.

Gold & Silver outlook

MCX Gold price remained volatile before settling for the week on a flat note. On the higher end price found resistance around 20EMA which triggered a selling pressure towards the end of the week. Going forward, the trend may remain weak the price may find resistance around 46800.

MCX Silver remained the previous swing low on the daily chart. In addition, the price has remained below the 20EMA on the daily timeframe. Over the near term, the price may find resistance around 61500. A decisive move above 61500 may induce a rally towards 63000.

Covid cases in India & Vaccination drive across India

As per the Union Ministry of Health, India has reported a surge in its active Covid-19 cases and deaths on Sunday with a recovery rate now stands at 97.77%. India saw a rise of 2,034 active cases in a day. At present, India's active case count stands at 3,03,476, which is 0.90% of the total caseload.

India's Covid-19 vaccination coverage has crossed the 85 crore landmark milestone, where 63,04,33,142 first doses have been administered while 22,50,45,137 of the second dose has been administered to date.

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