Market may see a lot of action this week in the run up to Diwali on Sunday as people buy gold and stocks on this occasion.
The market would also track busy earnings season in progress, results to be declared on October 24 for the assembly elections in Maharashtra and Haryana as well as other vacant Lok Sabha and Assembly seats that went for polling. Attack on terrorist camps in Pakistan Occupied Kashmir and global cues like US-China trade negotiations and EU, UK Brexit deal in the final phase of Parliament approval would come into play as market opens on Tuesday after.
BSE and NSE will conduct one-hour special muhurat trading session on the occasion of Diwali on Sunday, October 27 making it an extended week for the market.
Since Monday was a holiday, second quarter results declared by Reliance Industries, HDFC Bank, LIC Housing Finance among others would boost market sentiments with robust performances.
Ajit Mishra, Vice President — Research, Religare Broking said, “It’s going to be an important week on the earnings front as big names like HDFC Bank, Axis Bank, SBI, ITC, Bajaj Auto, Hero Motocorp, L&T and HCL Technologies will announce their numbers along with several others. Participants will first react to the Reliance results and minutes of RBI’s MPC’s meet which came in after the market hours on Friday.”
“Technically, Nifty looks buoyant for further surge but 11,800 would be tough to cross. In case of profit-taking, 11,540-11,370 zone would provide the needed support. The underperformance of the banking index is still a concern and perhaps the upcoming results from the banking majors may help in triggering a sustainable move ahead. Amid all, we do not see easing in volatility,” Mishra said.
Buying in equities by the foreign portfolio investors last week was quite encouraging for the market as both Sensex and Nifty-50 indices rose for the sixth consecutive session. It will be interesting to see when the profit booking comes in the market this week as traders would like to book some profit before Diwali while institutions like mutual funds would take advantage of sharp fall in prices of the Mid-Cap and Small-Cap stocks and go for buying before the prices soar on account of FPIs buying. FPIs are net buyers by Rs 4,790 crore in October so far.
How the overnight US market performs and opening of Asian markets would also define Indian markets performance on Tuesday.