Mumbai, 5 Nov, 2016(GPN) :
Feeble global cues dictated our market trend in the passing week and pushed the Nifty index below its major support zone of 8500. Not only the international factors, things on local front too were not so encouraging and hence failed to cap the decline in index. Mainly, anxiety ahead of US Presidential election, after the recent survey indicating tight race among the two candidates, triggered sell-off globally. This time, selling was witnessed across the board which unsettled the traders, especially those who were holding Midcap and Smallcap counters.
The upcoming week is going to be a decisive one not only for the US but for the markets across the globe. The election is scheduled on Nov 8 so expect volatility to heighten further in days to come.
On the economy front, traders will be eyeing the Index of industrial production (IIP) data on Nov 11.
Traders will also be eyeing lots of important earnings announcements in the final leg of result season during the week. Britannia, CEAT, ICICI Bank, Ashok Leyland, BHEL, Bharat Forge, Tata Communication, Karnataka Bank, Lupin and REC Ltd etc. will be announcing their numbers.
After the recent decline, uneasiness has increased among the participants ahead of the US Presidential election and it’ll subside only after the election result. Meanwhile, data on local front along with earning will continue to provide cues in between. Keeping all in mind, we suggest traders to go light in the event and let the markets stabilise first. On index front, 8300 holds important support in Nifty now while in case of bounce, 8500 would act as immediate hurdle. Investors, on the other hand, should use this fall to add quality counters with medium to long term view.
