Key developments that will drive the markets this week

Let us look at the key developments this week.

Oct 18, 2021 07:10 IST India Infoline News Service

Domestic bourses maintained a northward journey with both key indices recording a fresh all-time high. The stock market has created history by surpassing one more milestone in the last week. As it began with the Nifty 50 topping 16,000 on August 3, sprinting to 17,000 on August 31 and now moving past 18,000 – with the addition of the last 1000 points being the second-fastest since its establishment. In the last week, the Nifty closed near day’s high at 18,339 levels, up by 1%. On the sector front, excluding auto, all the indices closed in green.

The Indian stock markets will first react to HCL Tech, HDFC Bank and D-Mart result on Monday.

Let us look at the key developments this week.

Expectation results for the week

Quarterly results will dictate market sentiment and will be the talk of the coming week as they pick up the pace. As nearly 200 companies will declare their July-September period scorecard amongst them are UltraTech Cement, ACC, Hindustan Unilever, Nestle India, Asian Paints, Yes Bank, JSW Steel, TVS Motor Company, HDFC Life, L&T Infotech, Havells India, Jubilant Foodworks, Biocon, PVR, Tata Consumer Products, Reliance Industries, and ICICI Bank.

Apart from that, Route Mobile,  Tata Coffee, ICICI Prudential Life Insurance Company, ICICI Securities, L&T Technology Services, Mastek, Angel Broking, L&T Finance Holdings, Shoppers Stop, Tata Communications, ICICI Lombard General Insurance Company, IDBI Bank, Indian Energy Exchange, IIFL Securities, Indian Hotels, IndiaMART InterMESH, LIC Housing Finance, South Indian Bank, Federal Bank, Gland Pharma, Inox Leisure, Jubilant Pharmova, Kajaria Ceramics, Polycab India and Tata Elxsi are the key ones to release earnings next week.

Macro data for this week

On Friday, minutes of the RBI's October 6-8 monetary policy review will be released. Bank loan & deposit growth for the fortnight ended October 8, and foreign exchange reserves for the week ended October 18 will be released on October 22.

FII & DII updates

Foreign portfolio investors (FPI) have net purchased Indian equities worth Rs225.9cr ($32.6 million) so far this month. Net buyers by FPIs were at Rs27,756cr ($3.8 billion), in the month September.

Covid cases & Vaccination drive in India

According to the Union Health Ministry data updated on Sunday, India reported the lowest daily rise in coronavirus cases since early March with 14,146 fresh infections. India's active cases fell to 5,786 in a day, and the overall active caseload has gone below 2 lakh after more than seven months. India's cumulative active case count stands at 1,95,846 as of October 17.

Maharashtra on Saturday reported 1,553 coronavirus positive cases and 26 deaths while 1,682 patients recovered, the state health department said.

Technical view

Domestic markets resumed a fresh leg of the rally as the indices closed the week on record highs. The index Option gamma writers ran for a cover as the indices broke out from its trading band. On the options front (October 29, 2021 expiry), Nifty 18000PE 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 had given breakout from the falling trend-line on the daily chart during the week; however, the price closed below the trend-line as price corrected on the last day of the week. During the week the price remained above 50EMA as well as 20EMA.

MCX Silver ended the week with a gain of more than 2% at the end of the week. Besides, the price moved above the 50EMA on the daily chart. However, rising prices failed to move above the trendline. Support seen at 62000/60500 whereas resistance is visible at 64500.

US indices closed the week higher and positive in this month

US stock markets closed the week higher and are positive on the month. Better-than-expected third-quarter earnings reports boosted the Dow Jones Industrial Average to its best weekly performance since June.

The Dow Jones Industrial Average gained 382.20 points, or about 1.1%, to 35,294.76 and the S&P 500 added roughly 0.8% at 4,471.37. The Nasdaq Composite rose 0.5% to 14,897.34.

As on Friday, 80% of the 41 S&P 500 companies that have reported third-quarter results have topped earnings-per-share expectations.

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