Key developments that will drive the markets this week

Let us look at the key developments this week.

Nov 01, 2021 07:11 IST India Infoline News Service

Domestic markets lost their lustre for the second week in a row, with DIIs becoming net sellers for the first time this month since March 2021. The coming week is a holiday-shortened one and it also marks the beginning of the new month so participants will be eyeing monthly auto sales and Markit Manufacturing PMI and Markit Services PMI on November 1 and November 3 respectively. Also, there will be a noticeable buzz in the primary market too as three IPOs are opening for subscription on November 1.

On the global front, the US Fed will announce its interest rate decision on November 3, any clarity on stimulus tapering will be closely watched. With this, COVID-related updates from the global markets will also be in focus.

Let us look at the key developments this week.

Rseults Expectation for the week

Around 350 companies are slated to post their quarterly numbers this week with are HDFC, Tata Motors, Bharti Airtel, State Bank of India, Sun Pharma, Eicher Motors, HPCL, Divis Laboratories, and IRCTC.

Aditya Birla Capital, Devyani International, Indian Railway Finance Corporation, SPARC, Lux Industries, Bank of India, Godrej Properties, Union Bank of India, Bajaj Healthcare, Bombay Dyeing, Dabur India, Easy Trip Planners, eClerx Services, Jindal Steel & Power, Laxmi Organic Industries, Minda Corporation, MTAR Technologies, PNB Housing Finance, Radico Khaitan, Trent, Aditya Birla Fashion and Retail, Bata India, Pfizer, Muthoot Finance, Dhanlaxmi Bank, and Sun TV Network will also announce earnings next week.

IPOs back in action

Sigachi Industries, SJS Enterprises and PolicyBazaar IPOs will hit Dalal Street today, while, Nykaa will be in focus as the company's IPO will conclude on Monday. The subscription window of Fino Payments Bank's initial share sale will close on Tuesday.

Macro data for this week

The US Federal Reserve Policy meeting, is scheduled to be held on November 2-3. and investors will closely watch the commentary related to tapering schedule and indication of interest rate hikes give the threat of inflation.

In India, manufacturers will release monthly sales reports for the month of October today. Private surveys on manufacturing and services in India are due on Monday and Wednesday respectively. GST collections will be announced today.Foreign exchange reserves for the week ended October 29, and deposit and bank loan growth for the fortnight ended October 22 will be released this Friday.

In Europe, European Central Bank President Christine Lagarde is scheduled to speak on Wednesday and Bank of England's decision on key rates is due on Thursday.

In Asia, the Minutes of the Bank of Japan's latest policy meeting will be released on Tuesday. While, Chinese trade data is due on Sunday, November 7.

FII & DII updates

Foreign institutional investors have dumped Rs15,700cr worth of Indian equities in the last week, taking the total outflow to Rs25,572cr in October month. On the other side, domestic institutional investors have net bought Rs9,427cr worth of shares during the week and their net buying in a month stood at Rs4,471cr.

Technical view

Domestic markets witnessed heavy selling pressure throughout the week, to close in the red as across the board profit booking weighed in. The index Option gamma writers ran for a cover on account of a sharp delta move in the indices. On the options front (November 25, 2021 expiry), Nifty 18000CE 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.

Gold & Silver outlook

MCX Gold remained sideward during the week. On the daily chart price sustained above the previous consolidation. During the week the price remained above 50EMA as well as 20EMA. The 20EMA and 50EMA are in a bullish crossover. On the lower end, immediate support is visible at 46500, below which price may correct towards 45500. On the higher end resistance is visible at 48800/50000.

MCX Silver found resistance around the previous swing high on the daily chart. The price remained above the 50EMA as well as 20EMA on the daily chart. The bias is expected to remain sideways until the price breaks above the falling trend line on the daily chart. Support is seen at 62000/59000 whereas resistance is visible at 67000/70000.

Covid cases & Vaccination drive in India

According to the data by the union health ministry, India on Sunday saw a decline in Covid-19 cases and daily deaths due to the infection. India registered 12,830 new Covid-19 cases and 446 deaths in 24 hours. With this, India's cumulative caseload has climbed to 3,42,73,300. The active cases have also declined to 1,59,272--the lowest in 247 days. And, the overall recoveries have jumped to 3,36,55,842. India has vaccinated 1,06,14,40,335 of Covid-19 vaccines so far. PM Narendra Modi said the country is preparing more than 5 billion COVID-19 vaccine doses for the world next year.

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