Key developments that will drive the markets this week

Let us look at the key developments this week.

Nov 08, 2021 07:11 IST India Infoline News Service

Domestic markets during the last week traded volatile but managed to gain nearly one and a half per cent, offering some respite to participants after two weeks of decline. Favourable global cues combined with the news of upbeat GST collection numbers triggered a strong start however caution ahead of the US Fed meet capped the upside in the following sessions. Finally, the Nifty index settled at 17,916.80 levels, up by 1.39%.

In the coming week, participants will be closely eyeing macroeconomic data i.e. IIP and CPI inflation of November 12. We’re going to see noticeable traction in the primary market, as well as Paytm IPO, is opening for subscription on November 8 i.e. Monday.

Let us look at the key developments this week.

3 companies to open IPO

As many of you are aware three companies - Paytm, Sapphire Foods and Latent View Analytics will open their initial public offerings (IPO) andwill raise in total nearly Rs21,000cr. Parent One97 Communications will open Rs18,300-crore PaytmIPO, the largest-ever IPO in history, between November 8 and November 10.

KFC and Pizza Hut operator Sapphire Foods will launch its Rs2,073cr IPO on November 9 which will close on November 11. The price band for at Rs1,120to Rs1,180 per share.

On the listing front, FSN E-Commerce Ventures, the operatorof Nykaa and Nykaa Fashion chain is expected to make its debut on the BSE aswell as NSE on November 11.Fino Payments Bank is also likely to list its equity shares on November 12.

Results expectation for the week

Nearly 2,100 companies will release their earnings in thecoming week including prominent names like Britannia Industries, AurobindoPharma, Bosch, Mahindra & Mahindra, Power Grid Corporation, Bank of Baroda,Zomato, Tata Steel, Coal India, Grasim Industries, Hero MotoCorp, HindalcoIndustries and ONGC.

Among others, Sobha, Shankara Building Products, UjjivanSmall Finance Bank, Wockhardt, Astrazeneca Pharma, BHEL, HEG, Indraprastha Gas,MRF, Petronet LNG, Affle India, Berger Paints, Glenmark Life Sciences, IndiaCements, Krishna Institute of Medical Sciences, Mazagon Dock Shipbuilders,Metropolis Healthcare, Nuvoco Vistas Corporation, Oil India, PidiliteIndustries, Tata Teleservices, Balkrishna Industries, Bharat Dynamics,Engineers India, Godrej Consumer Products, HUDCO, Natco Pharma, NHPC, NMDC, Power Finance Corporation, Prestige Estates Projects, RailTel Corporation,Suryoday Small Finance Bank, Zee Entertainment Enterprises will be updatingtheir quarterly numbers in this week.

Amara Raja Batteries, Apollo Hospitals Enterprise, AshokLeyland, Mrs Bectors Food Specialities, Bharat Forge, Burger King, ForceMotors, Glenmark Pharma, Motherson Sumi Systems, NALCO, NBCC, Paras Defence,Suzlon Energy, Ashoka Buildcon, Godrej Industries, Ipca Labs, JK Cement, PNCInfratech, Sadbhav Infrastructure Project, Shalimar Paints, Sterling and WilsonSolar, Thyrocare Technologies, and Vivimed Labs will also announce quarterlyearnings next week.

Inflation & Industrial Output watch out for

Market participants will be closely eyeing macroeconomic datai.e. IIP and CPI inflation of November 12.

FII & DII updates

FIIs flow has been in negative terrain for the third consecutiveweek, it has net offloaded Rs686.85cr worth of Indian equities in the passingtruncated week, on top of Rs25,572cr of selling in October 2021. However,domestic institutional investors managed to support the market to some extent,as they net bought Rs344cr worth of shares in addition to Rs4,471cr of buyingin October.

Gold &Silver outlook

MCX Gold moved up after a downwards consolidation on thedaily chart which suggests the rise of optimism at the end of an indecisive phase. During the week the price remained above 50EMA as well as 20EMA. 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 remained sideward during the week. The price remainedabove 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 dailychart. Support is seen at 62000/59000 whereas resistance is visible at 67000/70000.

Covid cases& Vaccination drive in India

According to the Ministry of Health and Family welfare onSunday, India reported 10,853 COVID-19 cases and 526 deaths in the last 24 hours with the addition of new deaths, the total death count reached 4,60,791. Active case load stands at 1,44,845 the lowest in the last 260 days, the Ministry said.With this, a total of 1,08,21,66,365 dosed of COVID-19 vaccine has been administeredin the country so far.

US markets endat fresh new all-time highs

US markets on Friday closed at fresh new all-time highs asjobs data spurs bulls to push equities higher. Bond yields fall to 1.47% even as the US$ index hits a fresh new 4-month high at 94.28. Oil prices remain range bound as supplies see an increase while the rise in Covid cases in the EU sees demand consolidation.

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