Will the corporate results support the market? Markets Week ahead - October 2nd week

 

The Previous week FIIs were net sellers and DIIs were net buyers. DIIs have bought for more than 3400 crores and FIIs have sold around 3600 crores in the cash market.

Nifty is above 17,800 and SGX nifty is indicating a gap down opening. India VIX is above 15 so we must be cautious.  

This week we must look into CPI inflation data, U.S. inflation data and the corporate results. On Friday TCS declared it's results, it was below the street expectations. This may create a jitter in the market tomorrow. The results of Infosys, Mindtree, Wipro and HCL tech will be out this week. If those results also does not meet the street expectations then the market may fall slightly but if the results of other index heavy weight stocks like HDFC bank, Reliance are good then it may recover.

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Nifty has formed a bearish engulfing candlestick pattern on the daily time frame so we must be cautious. Check this out in the chart below. To know more about candlestick patterns click here.

(Tap on image for full screen view)

(Chart from www.tradingview.com)

 

In Nifty 18,000 has the highest open interest on the call side and on the put side, 17,500 has the highest open interest in the October month expiry. In the current week expiry, the 18,000 call and 17,800; 17,700 puts are having huge open interests.

In Nifty Bank, 39,000 has the highest open interest on the call side and on the put side, 37,500 has the highest open interest in the October month expiry. In the current week expiry, the highest open interest is at 38,000 on the call side and 37,000 on the put side.  

Global markets are mixed, U.S. markets and SGX Nifty indicate a slight gap down opening on Monday. Currently, the PCR of Nifty is 1.26 (28 Oct expiry).

Finally to conclude, 

• This week Nifty may trade between 17,450 and 18,000.
• FIIs are selling continuously, so we must be cautious as it may drag the market down.
• India VIX must come down below 15.
• Must look into the Q2 results.
• Must watch TCS and other IT stocks price movement this week.

"Have a profitable week"

You can check the FII long and short data, FII DII net sales, open interest data, Global markets data, on the "Quick Bites" page. Click here and check now. 

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