Informist, Friday, Oct 13, 2023
By Anshul Choudhary
MUMBAI – Indices are seen muted next week and may move in a range of 19500 to 20000 points. Analysts will keep tracking the movement in US bond yields and the dollar index to assess the Nifty 50's direction.
"Yields (of US Treasury bonds) and the dollar index are the two major concerns and if these move higher and Nifty 50 falls below 19500, it might be a problem," said Raj Deepak Singh, head of derivatives research at ICICI Direct Research. Singh said that the current movement in the Nifty 50 is very small, and it is not showing any signs of weakness, as long as the index stays above 19500 points.
"Nifty 50 reaching 20000 points till monthly expiry is a possibility only if we do not close below 19700 points next week," said Ganesh Angaj, technical head at NVS Brokerage.
Analysts said there is a tussle going on between domestic and foreign investors which is keeping the indices in a range. On the one hand, foreign investors are on a selling spree, and on the other hand, sustained buying from domestic buyers has helped indices stay in a comfortable zone.
Outflows from foreign investors have been rampant. According to National Securities Depository Ltd, Foreign Portfolio Investors have sold equities worth 97.84 bln rupees in October till today---touching over 60% of outflows witnessed in September already.
Information technology companies, except HCLTech, have been a drag on the domestic indices since the earnings season began with Tata Consultancy Services on Wednesday. Although, earnings for IT companies have largely been either in-line or below expectation, fuelling more selling and are finding hope in management comments and a strong order book.
HCLTech shares rose today after the management said it expects strong growth in the second half of the ongoing financial year ending March. "IT companies management commentary indicates that the pain is gradually getting over," said Viraj Vyas, derivative and technical Analyst with Ashika Stock Broking.
The remaining IT companies such as LTIMindtree and Wipro will announce their earnings next week, along with major financials such as HDFC Bank and Bajaj Finance.
End
Edited by Vidhi Verma
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