Mumbai38 minutes ago
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The stock market is expected to rise in the week starting from Monday 27th October. Second quarter results, America’s trade deal with India-China, global market signals, buying and selling by foreign investors and technical factors will decide the market movement.
Let us understand what can happen in the market this week…
Support Zone: 25,722 | 25,694 | 25,593 | 25,468
Support means, the level where the stock or index gets support from falling down. The price does not go down easily due to increase in purchasing here. There may be a buying opportunity at these levels.
Resistance Zone: 25,874 | 25,920 | 26,045 | 26,146 | 26,372
Resistance means the level where there is a hindrance in the stock or index going up. This happens due to increase in sales. If Nifty crosses the resistance zone, new bullish momentum may come.
market direction
Next Trading Day (27 October): According to market experts, the market may open about 50 points higher at around 25,850 on Monday.
It is expected to go up to 25,900–26,000 in day trade. Immediate support is at 25,700. That is, if the level of 25,700 is broken, it can go up to 25,600.
- Expected intraday upside as Bollinger gets closer to lower band.
- VIX being at 11.59 is giving a signal of decreasing fear.
- DII purchases are protecting the market from falling further.
- With PCR being 0.66, the benefit of call unwinding is expected.
All week (27–31 October): The market is likely to remain bullish throughout the week. The range of Nifty 50 can be from 25,600 to 26,200. These levels are based on technical analysis, OI data from the option chain, and DII purchases.
Caution necessary: There can be sharp fluctuations in the market at any time, so after taking any trade, definitely use risk management and stop-loss. Factors like global market or trade deals can also affect the market.
Now 5 factors which can decide the direction of the market…
1. India-US Trade Deal: The trade deal between India and America may be finalized. This may ease the 50% tariff imposed on India’s exports.
Investors will keep an eye on this development. Apart from this, investors will also keep an eye on the US-China meeting which can reduce trade tension.
2. Second Quarter Results: Investors will keep a special eye on the results, which so far are proving to be better than expectations. In the defense sector, Mazagon Dock and BEL will present their results.
Apart from this, results of companies like Kotak Mahindra Bank, PNB Housing, IOC, Coal India, Adani Power, Dabur, BHEL and NTPC will also come which can give a new direction to the market.
3. FII Activity: Foreign investor (FII) sentiment is showing early signs of stabilizing after months of selloff. On October 24, FIIs made net purchases of Rs 621 crore. During this period, DII made net purchases of Rs 173 crore.
In the year so far, FIIs have sold shares worth more than Rs 2 lakh crore, while DIIs have purchased shares worth more than Rs 5 lakh crore.
4. US Market: Movements in the US market affect other markets. Some impact may be visible on Indian markets also. American markets closed higher on Friday.
- The Dow Jones closed up 472.51 points, or 1.01%, at 47,207 on Friday.
- The S&P 500 index closed at 6,791, up 53 points or 0.79%.
- The Nasdaq Composite rose 263 points, or 1.15%, to 23,204.
5. Technical View: HDFC Securities Senior Technical Research Analyst Nagaraj Shetty said that a bullish pattern like higher tops and bottoms has formed on the daily timeframe chart of Nifty. The current weakness is in sync with the new higher bottom of this pattern.
Ajit Mishra, Head of Research (SVP), Religare Broking, said that despite the ongoing corrective phase, the bullish outlook on Nifty remains intact. As long as Nifty maintains itself above 25,600, the trend of the index will remain positive.
Sensex closed 345 points down at 84,212
On Friday, October 24, the last trading day of the week, the Sensex fell 345 points and closed at 84,212. Nifty fell by 97 points and closed at 25,795.
20 out of 30 Sensex stocks declined. Shares of Hindustan Unilever, UltraTech, Adani Ports fell by up to 3.5%.
34 out of 50 Nifty stocks fell. FMCG, Banking, Pharma and Healthcare sectors of NSE fell the most. Metal and realty stocks remained bullish.
Disclaimer: This article is only for information and learning. The opinions and advice given above are of individual analysts or broking companies and not of Dainik Bhaskar. We advise investors to consult certified experts before taking any investment decision.
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