The week ahead will see global and domestic market action, with several key events like quarterly earnings of Larsen & Toubro Ltd., and Cipla Ltd., the listing of Waare Energies Ltd., and key global indicators like the announcement of U.S. Unemployment Rate data.
Markets Last Week
The benchmark equity indices fell for the fourth consecutive week. On a daily basis, they continued their downtrend for the fifth session.
The Nifty 50 ended 218.60 points or 0.90% down at 24,180.80 and the BSE Sensex fell 662.87 points or 0.83% to close at 79,402.29. During the day, the Nifty fell as much as 1.3% and the Sensex fell as much as 1.2%.
The foreign portfolio investors offloaded stocks worth Rs 3,036.8 on Friday, according to provisional data from the National Stock Exchange. Domestic institutional investors, meanwhile, bought stocks worth Rs 4,159.3 crore.
In the week ended Oct 25 - the Nifty ended 2.7% lower and the Sensex lost 2.2%. All sectoral indices on the NSE ended lower, with the realty and metal losing the most.
Also Read: India's Top 10 Most-Valued Firms Add Nearly Rs 19,277 Crore In Market Cap Led By TCS, HDFC Bank
Key Levels To Watch
The selling pressure in Indian equities is set to continue in the new week.
"Technically, Nifty formed a bearish candle on both daily and weekly charts, indicating weakness.," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd
Conversely, the area around 24,500 and 24,700 could serve as a key resistance level for buyers.
Bank Nifty has formed a bearish candle and breached the crucial support level of 51,000, indicating weakness according to Yedve.
As long as Bank Nifty remains above 50,380, a rally to 51,000 is possible, but analysts advise using this opportunity for profit booking. If it drops below 50,380, it may head toward the psychological level of 50,000.
Domestic Factors
One of the major triggers for the markets on the domestic front will be the ongoing earnings season. Larsen & Toubro, Cipla, Proctor And Gamble, Suzlon Energy, Aditya Birla Capital, Welspun Enterprises, Star Health, Adani Enterprises, Canara Bank and Allied Blenders are some of the major companies announcing their earnings in the coming week.
The other trigger could be the fluctuation of gold and silver prices as Dhanteras approaches. As of Friday, gold was priced at Rs 78,060 per 10 grams, according to the India Bullion and Jewellers Association Ltd. This minor decline follows a period in which both metals have remained close to their all-time highs, fueled by seasonal demand during a buying seasons considered auspicious by many.
Demand for these precious metals usually surges in the weeks leading up to the festival.
ICICI Lombard announced an interim dividend of Rs 5.5 per equity share, representing 55% of the Rs 10 face value, for the fiscal ending March 31, 2025. The record date for this interim dividend is set for Oct. 28, with payments to be made to shareholders on or before Saturday, Nov. 16.
Reliance Industries Ltd. set Oct. 28, 2024, as the record date for shareholders eligible to receive its much-anticipated 1:1 bonus shares.
Dr. Reddy's Laboratories has announced a stock split, reducing the face value of its shares from Rs 5 to Rs 1 each.
Global Cues
One of the major triggers for global markets is the escalation of geopolitical tensions in the West Asia region. Israeli fighter jets struck multiple targets in Iran in retaliation to an earlier missile attack and an assassination attempt against Prime Minister Benjamin Netanyahu.
Besides that, a raft of data from the U.S. will be closely watched. The U.S. Chicago Purchasing Managers' Index and the European Union's Consumer Price Index will be important data points releasing in the upcoming week in addition to initial jobless claims, unemployment rate, and the manufacturing PMI.
In addition, US durable goods orders for the month of September will be released on Oct. 25.
The US will also release Average Hourly Earnings and Non Farm Payrolls this week.
China will also be releasing its manufacturing PMI.
The European Union is also set to release it's Year-On-Year and Quarter-On-Quarter GDP this week.
Primary Market Action
The primary market will see subdued action this week with no new IPO opening, but eight listing.
Afcons Infrastructure Ltd.'s initial public offering opened on 25 Oct. and will be closing on 29 Oct, it will also be listing on 4 Nov. 2024. The firm set a price band of Rs 440 to Rs 463 per share for its three-day IPO, which is a mix of both fresh issue and an offer for sale, totaling Rs 1,250 crore and Rs 4,180 crore respectively, at a face value of Rs 10 each.
Corporate Actions Ahead
Next week, Dr.Reddy's Laboratories Ltd., Infosys, NTPC, Tech Mahindra along with several other companies, are expected to be in the spotlight as they approach their record dates for dividend declarations, bonus issues, and stock splits.
The record date for the stock split of Sellwin Traders was set as 31 Oct, the record date for Quasar India was set to be 29 Oct, the record date for Dr Reddy's Laboratories has been set as Oct. 28. Several other companies, are expected to be in the spotlight as they approach their record dates for dividend declarations, bonus issues, and stock splits.
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