Key developments that will drive the markets this week

Let us look at the key developments this week.

Nov 15, 2021 07:11 IST India Infoline News Service

Indian stock markets on Friday rebound in the final session and changed the tone which helped the index to close around the week’s high. The Nifty50 ended positively in the last week and formed a strong bullish candle in the last trading session. The beginning was tracking upbeat global markets, however, profit-taking in the middle pushed the bulls slightly on the back foot.

The global markets are trying to decode the implications of rising inflation, any intensive selling by FIIs may take Indian indices lower, unless the domestic players provide support. With this, Dalal Street will also see a new IPOs listing; and the sentiment surrounding listing gains continues to remain bullish.

Further, the coming week is a holiday-shortened one and participants will first react to the macroeconomic data of IIP and CPI inflation in early trade on Monday.

Let us look at the key developments this week.

Sigachi Industries, Policybazaar, SJS Enterprises to list today

Investors are keenly awaiting three new listings on stock exchanges today – these are PB Fintech (Policybazaar), SJS Enterprises and Sigachi Industries. The IPOs of all three companies were open for subscription between November 1-3.

Other than listings, Tarsons Products will open for subscription today and conclude on November 17. The initial share sale comprises a fresh issue of equity shares worth Rs150 crore and an offer-for-sale of 1.32 crore shares by promoters and an investor.

Go Fashion will open on November 17 and will close on November 22.

Inflation & Trade data in focus

WPI inflation numbers, & balance of trade for October will be released on Monday. Whereas, deposit & bank loan growth for the fortnight ended November 5, and foreign exchange reserves for the week ended November 12 will be announced on November 19.

FII & DII updates

Foreign institutional investors (FII) outflow continued in the equity market as they net sold Rs4,901.76cr worth of shares during the week, but the domestic institutional investors (DII) bought Rs5,393.52cr worth of shares during the same period.

Covid active cases in India & globe

According to the Union Health Ministry (as of Sunday),  as many as 11,271 COVID-19 cases have been reported in India in the last 24 hours taking the total tally to 3,44,37,307. The daily rise in new COVID infections has been below 20,000 for 37 straight days and less than 50,000 daily for 140 consecutive days now. The recovery rate currently is at 98.26%, the highest since March 2020.

Across the globe, France, Spain, Colombia, Germany, Italy, Poland, Netherlands, etc. showed the graph of COVID cases in the northward direction. Europe saw fresh cases of viral illness on the rise in various countries across the continent, the media reports said. The latest surge in infections has prompted European governments to reintroduce curbs or announce fresh ones.

Technical view

Markets witnessed pendulum swings as across the board volatility weighed in. The index Option gamma writers ran for a cover as the India VIX index saw a sharp move. On the options front (November 25, 2021 expiry), the 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 has given a consolidation breakout on the weekly chart which suggests a rise in optimism. On the daily chart, the price has moved above the previous swing high. On the lower end, immediate support is visible at 48800, below which price may correct towards 48000. On the higher end resistance is visible at 50000/50700.

MCX Silver price has moved above the previous swing high on the daily timeframe suggesting a rise of bullish bet. The bias is expected to remain positive over the short term. Support seen at 66000/65000 whereas resistance is visible at 68500/70000.

U.S. markets close higher on Friday

U.S. stock indices ended higher on Friday, with the Dow closed closing higher after enthusiasm about a breakup of blue-chip component Johnson & Johnson but the main benchmarks still saw losses for the week.

The Dow Jones Industrial Average on during the last week soared 179.08 points, or 0.5%, to close at 36,100.31. The S&P 500 was up about 0.7% at 4,682.85 and the Nasdaq Composite zoomed 1% at 15,860.96.

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