In next week, in addition to other ongoing subplots, RBI policy review, F&O expiry and quarterly
earnings may be vital to decide market’s direction in domestic bourses. In US, GE has posted lesser than
expected result; this may have some negative impact over market sentiments. Germany and France’s
stand w.r.t. Euro-zone rescue fund will be very crucial to keep alive buying sentiments across the world,
which may set tone for Energy, metal & commodities stocks across the globe. Next week, GAIL, ITC,
Titan, NTPC, Sterlite industries, Sesa Goa, Dr. Reddy’s etc may put forth their Quarterly results. Some
of the actions on global turf like implementation of buying bonds from secondary market through Euro
Zone rescue fund and quarterly results may have positive impact on the indices. Ratings review of
France and banking institutions may keep investors on their toe. For our market, next week will be a
truncated one that will witness expiry of F&O series of October month. Owing to these two factors, wide
gyration on either side with higher volatility may be seen. Surging of food inflation to double digit may
force RBI to undertake any rate hike in its proposed review meet in next week on 25th On Sectoral levels,
Capital goods players gaze at vanishing order book. L&T gave weak guidance; HCC slipped into red;
Crompton cracked further, this sector may continue to languish in next week. Nifty future was at
premium with respect to spot. A low value of Put/ Call ratio, moderate VIX may support the market.
But selling by FIIs (Index Funds) indicates that indices may witness some range bound movement with
weak bias and higher volatility in coming sessions. The bulk of October calls in terms of open interest are
placed at the strike price 5,200 while most active puts are at 4,800 level, which showed strong support
for the index. Data on tap for next week in includes the consumer confidence, durables goods order,
new homes sales, petroleum inventory report, new home sales, pending home sales, GDP forecast , and
Jobless claims. These will be instrumental in imparting any direction to global markets.
Nifty level
S1/S2- 4980/4920
R1/R2 -5090/5125
earnings may be vital to decide market’s direction in domestic bourses. In US, GE has posted lesser than
expected result; this may have some negative impact over market sentiments. Germany and France’s
stand w.r.t. Euro-zone rescue fund will be very crucial to keep alive buying sentiments across the world,
which may set tone for Energy, metal & commodities stocks across the globe. Next week, GAIL, ITC,
Titan, NTPC, Sterlite industries, Sesa Goa, Dr. Reddy’s etc may put forth their Quarterly results. Some
of the actions on global turf like implementation of buying bonds from secondary market through Euro
Zone rescue fund and quarterly results may have positive impact on the indices. Ratings review of
France and banking institutions may keep investors on their toe. For our market, next week will be a
truncated one that will witness expiry of F&O series of October month. Owing to these two factors, wide
gyration on either side with higher volatility may be seen. Surging of food inflation to double digit may
force RBI to undertake any rate hike in its proposed review meet in next week on 25th On Sectoral levels,
Capital goods players gaze at vanishing order book. L&T gave weak guidance; HCC slipped into red;
Crompton cracked further, this sector may continue to languish in next week. Nifty future was at
premium with respect to spot. A low value of Put/ Call ratio, moderate VIX may support the market.
But selling by FIIs (Index Funds) indicates that indices may witness some range bound movement with
weak bias and higher volatility in coming sessions. The bulk of October calls in terms of open interest are
placed at the strike price 5,200 while most active puts are at 4,800 level, which showed strong support
for the index. Data on tap for next week in includes the consumer confidence, durables goods order,
new homes sales, petroleum inventory report, new home sales, pending home sales, GDP forecast , and
Jobless claims. These will be instrumental in imparting any direction to global markets.
Nifty level
S1/S2- 4980/4920
R1/R2 -5090/5125
