The last batch of September quarter earnings, global cues, and macro data will be the top factors that investors will watch for market direction in this holiday-truncated week. Equity markets will remain shut on November 12 for Guru Nanak Jayanti.
Over 2,700 companies will announce their results this week including Britannia Industries, Aurobindo Pharma, Bharti Airtel, ONGC, and NALCO. Today, a total of 272 companies, including Hindalco and Coal India are scheduled to announce their September quarter results.
In terms of macro numbers, industrial production data and manufacturing production data for September 2019 are scheduled to be released later in the day. Further, retail inflation is slated to be announced tomorrow, while WPI Inflation for October is scheduled to be released on Thursday.
The domestic market came under heavy selling pressure in the last hour of the session on Friday. The S&P BSE Sensex lost 330 points to settle at 40,324.On the NSE, the Nifty50 slipped below 12,000-mark to end at 11,908, down 104 points.
According to analysts, traders should try to book profits at higher levels in Nifty. The 12,000 level will act as a major resistance level for the week, and 11,800 will act as support. However, if Nifty is able to breach the 11,800 level, it will led to sell-off which will open risk of correction up to 11,650. Therefore, traders should be cautious and should sell on higher levels every spike keeping close eye on 12,100
As for today, Asian shares edged higher on Monday after U.S. President Donald Trump said over the weekend that trade talks with China were moving along “very nicely”, though uncertainty remained over whether a deal would be signed this year. Japan's Nikkei was up 0.2 per cent, while Australian shares rose 0.5 per cent. However, South Korea's KOSPI was off 0.2 per cent. That left MSCI’s broadest index of Asia-Pacific shares outside Japan 0.05 per cent firmer. SGX Nifty, though, was trading in the red in the early session, indicating a flat to negative start for domestic indices.
In commodities, oil prices fell on Monday with Brent crude down 39 cents at $62.12 per barrel.
And before we wrap up, here's a trading idea. CapitalVia Global Research Limited recommends buying Grasim Limited above Rs 802 for the target of Rs 870 with stop-loss placed at Rs 765.