The market made history in the week ending October 14. This week Nifty closed above 18000. At the same time, the Sensex went above 61,000. The market saw a rally for the second consecutive week. Last week, except IT, all the segments saw a rise. Auto stocks rose strongly on expectations of a pick-up in demand during the festive season. On the other hand, banking stocks were also bullish on the back of good credit growth data and strong provisional numbers for Q2.
Last week Sensex-Nifty closed at record closing high. BSE Sensex closed above 61,000 for the first time with a gain of 1,246.89 points or 2.08 per cent. At the same time, Nifty50 crossed the much-awaited 18000 level and finally closed at 18,338.55 with a gain of 443.35 points or 2.48 per cent. It also touched the level of 18,350 during the week.
Last week, along with the giants, small and medium stocks also showed their strength. During this period, the BSE Midcap index had gained 3.34 percent and the Smallcap index had gained 1.92 percent.
Market experts say that the trend is expected to continue in the week starting from today. The eyes of the market will be on the results of the companies and the commentary of the management on them. New highs can be seen in the market with stock specific action. The market will first react today to the second quarter results of HDFC Bank and Avenue Supermart which came on Saturday.
Samco Securities It says that this week’s quarterly results will determine the market sentiment. The market will keep an eye on the management commentary coming along with the results. The companies are expected to maintain the momentum for the last quarter. In such a situation, if the results are better or weaker than expected, stock-specific action can be seen accordingly.
upcoming results
The results of about 200 companies will come this week. These include UltraTech Cement, ACC, Hindustan Unilever, Nestle India, Asian Paints, Yes Bank, JSW Steel, TVS Motor Company, HDFC Life, L&T Infotech, Havells India, Jubilant Foodworks, Biocon, PVR, Tata Consumer Products, Reliance Industries and ICICI Bank. The results are most important.
corona virus and vaccination
There is a decline in the cases of COVID-19. The number of daily cases has dropped below 20,000 for a period of more than a week. Due to this, the restrictions imposed due to Corona in the country are seen to be relaxed further. On October 18, the aviation sector has got approval to fly at its full capacity. At the same time, theaters and auditoriums will open in Maharashtra from October 22. Relief on the COVID front is also bringing relief for the market, whose effect will be seen on the movement of the market.
Dollar index and US bond yield
The US dollar index and bond yields have declined slightly after hitting key levels last week. The market will keep an eye on them in the coming weeks. Recent minutes from the FOMC indicated that the Fed may cut its bond purchase program in November. In such a situation, the eyes of the market will be on the Fed Policy Meet to be held in November.
technical view
Nifty50 has formed a Bullish candle on both the Daily and Weekly charts. On October 14, the Nifty had gained 1 per cent. Whereas Nifty was up 2.5 per cent throughout the week. This is a sign of further upside in the market. Experts say that Nifty may soon touch the level of 18,500. Option data also indicates that Nifty may trade in the range of 18,000 -18,500 in the coming week.
The highest call open interest has been seen at 18400. After that the highest call open interest is at 18,500 and 18,300 strike. Light call writing has been seen at 18,900 and then 19,100 strike. At the same time, call unwinding has been seen at 18,200 and then 18,100 and 18,300 strikes.
Similarly, the highest put open interest has been seen at 18,300. After that the highest put open interest is at 18,200 and 17,900 strike. Put writing has been seen at 18,300 and then 18,200 and 18,400 strikes. At the same time, put unwinding has been seen at 18,000 and then 18,100 and 17,900 strikes.
On October 14, the volatility index India VIX saw a fall of 2.07 percent. But on a weekly basis, it came down to 15.77 with a slight increase from 15.65. Motilal Oswal’s Chandan Tapadia Says that the comparatively lower level of India VIX indicates that the bulls have a strong hold on the market. The VIX needs to move below the 15-14 zone for further better conditions in the market.
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