Key developments that will drive the markets this week

Check out the key developments for this week.

Oct 25, 2021 07:10 IST India Infoline News Service

Indian markets witnessed profit-taking at higher levels in the last week, given subdued earnings announcements and mixed global cues. The beginning was upbeat but the tone changed as participants preferred to book profits which continued till the end. The news of the vaccination drive crossing the milestone of the 1 Billion mark also failed to trigger any meaningful rebound.

Furthermore, with the monthly expiry coming up next week, market volatility may linger. Nifty closed the week at 18114.90, down by 1.22%. The stock markets will first react to the Reliance and ICICI Bank numbers on Monday. Going ahead, earnings will continue to dictate the market trend, in absence of any major event.

Let us look at the key developments this week.

Q2 Earnings in focus

Around 700 companies will release their quarterly earnings this week which includes Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, ITC, L&T, Axis Bank, Maruti Suzuki, Titan Company, Adani Ports, Tech Mahindra, NTPC, Indian Oil Corporation, SBI Life Insurance Company, Bajaj Auto, Shree Cement, BPCL, IndusInd Bank, Dr Reddy's Labs, Cipla, and UPL.

Lupin, Aditya Birla Sun Life AMC, Colgate-Palmolive (India), Coforge, CSB Bank, HDFC Asset Management Company, Indus Towers, ABB India, Ambuja Cements, Canara Bank, Adani Enterprises, Punjab National Bank, Zee Entertainment Enterprises, CarTrade Tech, DLF, Blue Star, InterGlobe Aviation, Karnataka Bank, Marico, RBI Bank, SBI Cards and Payment Services, Tata Power, Adani Power, Apollo Tyres, Bandhan Bank, Cadila Healthcare, Escorts, Exide Industries, GAIL India, Oberoi Realty, Vedanta, Voltas, and Rossari Biotech will also announce quarterly earnings in the coming week.

Nykaa and Fino Payments Bank IPO to hit D-Street

Dalal Street is back with its two big IPOs namely Nykaa and Fino Payments Bank. FSN E-Commerce Ventures, the operator of Nykaa beauty stores, has fixed the price band of Rs1,085-Rs 1,125 for its maiden public share sale. The initial public offering (IPO) will remain open on October 28 and close on November 1, 2021.

Fino Payments Bank will open its public offer for bidding on October 29 and will close on November 2 with the price band for the offer is expected to be announced this week.

Domestic economy data in focus

Eight core sectors data will be released on Friday. These are coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity.

FII and DII flow

Foreign institutional investors have net sold Rs7,353cr worth of equity shares and domestic institutional investors net offloaded Rs4,504cr worth of shares in the week ended October 22, taking the total outflow to nearly Rs10,000cr and Rs5,000cr in October month so far.

Global cues to be watched so far

Bank of Japan is scheduled to make a decision on key interest rates and advanced estimates of GDP in the US will be released on Thursday. With this, Japan's consumer confidence data is due on Friday.

Technical view

Domestic markets finally took a breather ending its winning streak for the two consecutive weeks, to close in the red as across the board profit booking weighed in. On the options front (October 29, 2021 expiry), the Nifty 18500CE strike price has witnessed fresh writing, hinting at a formation of a ceiling level for the index around the mentioned strikes in the coming days.

Covid cases in India & Vaccination drive across India

According to the Union health ministry data released on Sunday, India on Sunday added 15,906 new Covid-19 cases, taking the total tally to 3,41,75,468. The death toll also climbed to 4,54,269 with 561 fresh fatalities.

The daily rise in new coronavirus infections has been below 30,000 for 30 straight days and less than 50,000 daily new cases have been reported for 119 consecutive days now.

Mumbai has witnessed a drastic rise in its Covid-19 active cases in October. The city has reported 420 new Covid-19 cases and five deaths in a day with the cumulative Covid-19 case count has surged to 753,653 and the toll to 16,202.

Gold & Silver outlook

MCX Gold sustained above the previous consolidation on the daily chart. During the week the price remained above 50EMA as well as 20EMA. The 20EMA and 50EMA are in the bullish crossover. On the other hand, the daily RSI has entered into a bullish crossover suggesting a positive price momentum.

MCX Silver moved above the previous swing high on the daily chart. Besides, the price moved above the 50EMA as well 20EMA on the daily chart. However, 20EMA and 50EMA are in the bearish crossover. 

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