There may be a decline in the stock market in the week starting from 4th November. This week, investors will keep an eye on companies' quarterly results, global and domestic economic data and other factors.
According to market expert Harshubh Shah, there may be a market crash in the coming days, hence one should avoid buying now. Shah had advised investors to stay away from the market even on the day of Muhurta trading.
Last week the market had closed with a rise of 322 points. The Sensex was at the level of 79402 on October 25, which came down to 79,724 on November 1. However, Nifty closed flat. It came down to 24,304 from the level of 24,399.
Five factors that can decide the movement of the market this week
1. Quarterly results of companies: SBI, Tata Motors will release results
This week, companies like Titan, Dr. Reddy's, Tata Steel, Power Grid, Apollo Hospital, M&M, Trent, SBI, Tata Motors, Asian Paint and Divis Labs will release the results for the July-September quarter.
Quarterly results have been impacted by weak demand environment and margin pressure. It hit FMCG, metal, auto and realty the most, while IT remained relatively stable.
2. Indian and foreign investors: FIIs sold shares worth ₹14,000 crore
Last week, Foreign Institutional Investors (FIIs) sold shares worth about ₹14,000 crore. However, in the same week, Domestic Institutional Investors (DIIs) bought shares worth Rs 10,000 crore.
In the month of October, foreign investors sold shares worth a record ₹ 1.2 lakh crore. However, domestic institutional investors countered the selling pressure by buying about ₹1.07 lakh crore.
3. Global Factors: US elections and Federal Reserve meeting
Investors' focus will be on the US presidential election to be held on November 5. There is also a meeting of the US Federal Reserve on November 7. In this, interest rates can be reduced by 0.25%. In the last meeting, the interest rate was reduced by 0.50% to 4.75%-5.0%.
4. Technical View: Market may fall to 23,500 level
According to experts, Nifty is consolidating within the 24,000-24,500 range. Ajit Mishra, SVP, Research, Religare Broking said – If Nifty crosses 24,500, it can go up to the level of 24,800.
Whereas if it goes below 24,000, the index may see a level of 23,500. Harshubh Shah, founder of Wealth View Analytics, has also predicted a correction in the market. He has advised investors to avoid buying.
5. IPO and Listing: 5 new IPOs, 1 will be listed
In the mainboard segment, four new public issues including Swiggy IPO will open next week, while in the SME segment, one new issue will open for subscription. Whereas shares of Afcons Infrastructure will be listed on 4th November.
Disclaimer: The views given in this analysis are of individual analysts or broking companies and not of Dainik Global News Daily. We advise investors to consult certified experts before taking any investment decision.
Graphics Source: NavJivanIndia | VaskarAssets
