Equity indices to follow quarterly results, macro-data (Market Outlook)

With the Nifty50 already at record high levels ahead of the onset of the festive season, market observers feel that the ongoing quarterly results season, along with the release of some key data points, are expected to guide the movement of key Indian equity indices next week.

"Keeping aside geo-political issues, which have been on and off, all eyes will be on the Indian indices as quarterly results season has begun," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

Major companies which will announce the July-September quarter earnings during the upcoming week include Bajaj Finance, Colgate Palmolive, Federal Bank, ACC, Axis Bank, Bajaj Auto, Wipro and UltraTech Cement.

Along with quarterly results, investors will keep a watch on some major macro-economic data to be released over the week.

"The focus will continue to be on results in this month. Sectors like financials, auto, metals, and consumer durables could see interest on back of results," said Arpit Jain, AVP at Arihant Capital Markets.

"On the macro front, Wholesale Price Index inflation data for September will be announced on Monday. Crude, refinery output for September will be announced on October 20-27," Jain added.

According to Vinod Nair, Head of Research, Geojit Financial Services, quarterly results have started on a positive note led by the IT and finance sector, raising investors' hopes for good second quarter results and festival ecstasy.

"Domestic market has largely factored in the near term hiccups in corporate earnings due to GST. Currently, market is looking at Q2 with a high year-on-year growth expectation of over six per cent for Sensex30 and 13 per cent for Nifty50," Nair added.

On the technical level, Head of Retail Research for HDFC Securities Deepak Jasani said that with the Nifty making fresh new highs, the sentiments will continue to be mildly bullish.

"The next resistance for the markets could be 10,190 and later 10,265. On corrections, Nifty could take support at 9,945," Jasani told IANS.

During the week gone by, key Indian equity indices rode the bulls supported by good buying sentiments, with the wider Nifty50 of the National Stock Exchange (NSE) hitting record highs on the last trading day of the week.

The Nifty50, on Friday (October 13), closed trade at a new high of 10,167.45 points, surpassing its previous closing high of 10,153.10 points scaled on September 18. On a weekly basis, it edged higher by 187.75 points, or 1.88 per cent.

The index also hit a fresh intra-day high of 10,191.90 points on Friday, crossing its previous high of 10,178.95 points on an intra-day basis scaled on September 19.

The 30-scrip Sensitive Index (Sensex) of the BSE, too, witnessed a strong closing at 32,432.69 points -- up 618.47 points, or 1.94 per cent, on a weekly basis -- its highest level since August 1 when it closed at a high of 32,575.17 points.

In the week ahead, Muhurat trading will be held on Thursday, October 19. The special trading session is held every year on Diwali.

The equity markets will remain closed on Friday, October 20, on the occasion of Diwali Balipratipada.

--IANS

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