Investors will be eyeing the crucial September industrial production data, a host of quarterly earnings, the foreign flow trend, assembly elections in Himachal Pradesh and mid-term elections in US this truncated week. Domestic exchanges will be closed on Tuesday on account of Guru Nanak Dev Jayanti.
The industrial production data for September will be out on November 11. On the same day, foreign exchange reserves and manufacturing production data will be released. Market participants will be closely watching assembly elections in Himachal Pradesh to be held on November 12.
Investors will also keep an eye on some important quarterly results including Coal India, Divi’s Lab, BPCL and CEAT on November 7; Bosch and MRF on November 8; Tata Motors, Lupin, Prestige Estates Projects and The Ramco Cements on November 9; Apollo Hospitals Enterprise, Campus Activewear and Oil India on November 10; BHEL and M&M on November 11 and Brigade Enterprises and Power Mech Projects on November 12.
K Dileep, Head of PMS at Geojit Financial Services, said: "FPIs were net sellers in the month of October as they were in September. But the month of November started with a good note. So far they were net buyers to the tune of Rs 6,000-plus crores. Expect decent flow going forward as the growth story of India is intact. Better than expected earnings and comfortable macro numbers are positive for India compared to other emerging markets. I don't expect any drastic move in the market on either side for another couple of quarters. But it is an ideal time for those who are looking at the medium to long term.
On the global front, traders will track the mid-term elections in the US to be held on November 8, where Americans will vote to pick new Congress members.
Other than that, investors would be eyeing few economic data from world’s largest economy, United States (US), starting with Redbook on November 08, API crude oil stock change and wholesale inventories on November 9, inflation rate, initial jobless claims on November 10, monthly budget statement and Baker Hughes Total Rig Count on November 11.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Global markets were buoyed at the onset of the week as markets across the globe were expecting central banks to dial down big interest rate hikes. Contrary to expectations, the Fed and BoE refused to tone down the rate hike narrative, shattering the global markets. Powell cautions that the desired Fed rate level is higher than previously expected, even though he indicated a rate hike of less than 75 bps in the upcoming meetings.”
“The Bank of England concurred with the Fed’s view and added that a protracted recession is anticipated. The hawkish commentary drove the dollar to soar along with US Treasury yields. However, FIIs' ongoing interest in the market and strong earnings kept the domestic market losses in check. Domestic PMI numbers also worked in favour of Indian equities as manufacturing and service activity remained healthy in October. With mounting concerns about a global recession and the anticipation of muted Q2 results from Tier 2 and 3 companies, markets are likely to be volatile in the upcoming week.” he added.
Rupak De, Senior Technical Analyst at LKP Securities has said: "Indian equities remained volatile before closing around the Friday’s high. The positive momentum continues as the index has closed above the previous swing high. Besides, the index has maintained its position above 200-DMA. The momentum indicator RSI is in a bullish crossover. The trend for the short term remains bullish, with an upside potential of 18,300/18,600. On the lower end, support is pegged at 17,950".
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