After an extended weekend, the Indian markets are likely to start a new week on a positive note on the global background. But, analysts say there is a risk of selling pressure at higher levels as Indian markets underperform global peers, where the near-term structure has shifted from “buy on the downside” to “sell on the rise”.
Indian stock market benchmarks Sensex and Nifty managed to gain over 1% in the last week, providing some respite to participants after two weeks of declines. The upbeat GST collection numbers along with favorable global cues lifted the sentiment. A mixed trend was witnessed on the sectoral front, with realty registering an unprecedented gain of 10%. The broader indices also saw a correction and moved up in the range of 2.5%-3.2%.
Ajit says, “In the coming week, participants will be eyeing the macroeconomic data i.e. IIP and CPI inflation for November 12. We are going to see a noticeable traction in the primary market as well as Paytm IPO will open for subscription on November 8. Used to be.” Mishra, VP Research, Religare Broking.
Paytm, Sapphire Foods India and Latent View Analytics The collectibles are ready to launch their IPO this week ₹21,000 crores.
On the earnings front, some of the leading companies like Aurobindo Pharma, Britannia, BHEL, IGL, M&M, Berger Paint, Pidilite, ONGC and Tata Steel will announce their results along with many others.
“The signals are in favor of further strength in the Indian markets. However, this range may widen next week. On the other hand, Nifty will get support at the level of 17,750-17,600. In case of a rally, resistance remains at the 18,000-18,100 area. Amidst all this, we are still seeing noticeable action on both sides, so participants should maintain their focus on stock selection and overnight risk management,” says Ajit Mishra, VP Research. Religare Broking.
Markets will be busy dealing with global macro numbers where the US inflation numbers set on November 10 will be the most important while China will also announce its inflation numbers on the same day. On the domestic front, we will have our IIP numbers on November 12.
Santosh Meena, Head of Research, Swastika Investmart Ltd. says, “The behavior of FIIs will be the most important element from here on as they are consistently selling and if they keep up with their current mood then we can expect the correction to expand further. can see.”
“If we talk about derivatives data then FII long exposure in index futures is 53% while put call ratio is trading at 1.08 points which is neutral for the market. If we look at the open interest distribution for the November 11 end it is very wide between 17000-18000. However 18000 is an immediate and strong resistance.”
World equity markets hit new highs on Friday, booking a week of solid gains following a strong US jobs report.
Technically, “Nifty is respecting its 50-DMA, however the near term formation is weak where 18000-18200 is an important resistance area where we can see selling pressure again, whereas if Nifty breaks out of this zone We can say that the correction is over. And the market is ready for fresh expansion. On the downside, if Nifty slips below its rising 50-DMA which may coincide with the level of 17700 then we can expect further weakness towards 17450-17250 zone,” says Santosh Meena, Head of Research, Swastika Investmart Ltd.
“Nifty Bank is trying to respect its 20-DMA on the basis of closing however 40500-41000 is a critical supply zone on any pullback and if it manages to stay above 41000 level then it will again On the downside, 39000 is immediate support while 38500 will remain sacred support.”
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