Indian stock market outlook for next week – 25 to 29 Oct
Before explaining the key factors that are likely to affect the Indian Stock Market next week, let us brief about last week’s highlight. Indian stock markets declined around a percent during the week ended 22 October. A decent correction was seen in the midcap and smallcap stocks whereas Banking stocks gained during the week.
Bank Nifty index was limelight during the week as it crossed 40k for the first time. It will remain highlighted in the coming week too as several banking stocks will announce their quarterly results. In the absence of any major events, the domestic markets will trade as per global cues and corporate earnings.
Key factors that are likely to impact the Indian stock market next week
Q2FY22 Earnings
On Monday, Indian markets will first react to Reliance and ICICI Bank’s Q2FY22 earnings. Both the companies have beat the analyst estimates in their September-end quarter earnings.
There are a total of 223 Indian companies that reported their September- end quarter earnings, and only 13 out of Nifty50 have announced their Q2FY22 earnings so far. In the coming week, 16 Nifty50 companies will be reporting their Q2 earnings ( pls check out the schedule below). Investors should closely monitor the corporate earnings next week, as the market will set their directions as per the earnings, in absence of any major events.
| Q2 FY22 Results dates for Nifty50 Stocks | |
| 25 Oct 2021 | TechMahindra |
| 26 Oct 2021 | Axis Bank |
| 26 Oct 2021 | Bajaj Finance |
| 26 Oct 2021 | Cipla |
| 26 Oct 2021 | Kotak Bank |
| 27 Oct 2021 | Adani Ports |
| 27 Oct 2021 | Bajaj Auto |
| 27 Oct 2021 | IndusInd Bank |
| 27 Oct 2021 | ITC |
| 27 Oct 2021 | LT |
| 27 Oct 2021 | Maruti |
| 27 Oct 2021 | SBI Life |
| 27 Oct 2021 | Titan |
| 28 Oct 2021 | Bajaj Finserve |
| 28 Oct 2021 | NTPC |
| 29 Oct 2021 | Dr Reddy |
The Global Stock Market Next Week
Global markets were positive last week, though it started with negative bias later the US, Europe, and Chinese market turned positive. The better than expected corporate earnings mixed economic data, and China Evergrande Group’s interest payment helped the major global markets to close in the positive territory last week. The corporate earnings, bond yields, Fed’s asset tapering news, and the below mentioned economic data will remain highlighted and set the direction of the global stock market next week.
| Important Global Macro Data Next Week | ||
| 26 October 21 | House Price Index | US |
| 26 October 21 | Consumer Confidence Oct | US |
| 27 October 21 | Industrial Profit SEP | China |
| 28 October 21 | Retail Sales SEP | Japan |
| 28 October 21 | BOJ Interest Rate Decision | Japan |
| 28 October 21 | GDP Growth Rate QoQ Q3 Adv | US |
| 28 October 21 | Initial Jobless claim | US |
| 29 October 21 | Unemployment rate | Japan |
| 29 October 21 | Tokyo CPI Oct | Japan |
| 29 October 21 | Industrial Production SEP | Japan |
| 29 October 21 | Consumer Confidence Oct | Japan |
| 29 October 21 | BOE Consumer Credit SEP | GB |
| 29 October 21 | Michigan Consumer Confidence | US |
Technical Outlook for the Expiry week
Technical view on Nifty and Bank Nifty Futures for the expiry week ( 28 Oct)
Nifty futures current position is on Sell, traders can continue the Sell position and reverse to the long position if Nifty futures close above 18260.
Bank Nifty futures current position is Buy, traders can continue the Buy position and reverse to the short position if Bank Nifty futures close below 39320.
You can follow our daily Nifty and Bank Nifty Futures trading levels here, for live support and traling stop loss you can contact us at – info@nifty50stocks.com
FII & DIIs flow
Last week both Foreign Institutional Investors (FIIs) and the Domestic Institutional Investors (DIIs) were the net sellers in the cash market segments. FIIs sold Rs 7353.04 crores while DIIs sold Rs 4504.4 crore in the cash market during the week ended 22 October.
After the one-way rally in the Indian stock markets both the institutional players have preferred to book some profits. So far in the month of October FIIs sold Rs 9869.93 crore whereas DIIs sold Rs 4956.24 crore in the cash markets. Next week, investors should closely monitor Institutional players’ moods, markets may rebound if they ( FIIs/DIIs) turn buyers into the cash market.
Coronavirus risk & Vaccination
India reported less than 20K fresh Covid-19 infections on a daily basis, the total active cases also declined to 172594. The declining Covid cases in India have helped the government to give more relaxation in Covid-19 related restrictions which has help the corporate to expand their businesses. The infections are seen rising again in the UK and several parts of China, Russia, Germany, and some other countries whereas it declining in the US, Japan, South Africa, etc.
Indian is the second country in the world after China that administered more than 100 crores of Covid-19 vaccines so far. The acceleration of the vaccine drive also helped to control the deadly infection in the country. But the investors should remain cautious and closely monitor the Covid numbers, especially after the sudden spike in UK and China.
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Happy Investing!!
Editor’s Desk
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