Sensex, Nifty this week: From India's fiscal deficit to Fed decision, factors that may drive Dalal Street

Last week, Indian equity markets ended with losses of over two percent each as uncertainties associated with the Israel-Hamas conflict continued to weigh on markets. This week, investors will be eyeing key events such as India's fiscal deficit data, monthly sales figures of cement and auto stocks, bank loan growth and deposit growth, and remaining quarterly results along with the Fed interest rate decision in the US that will keep the markets buzzing.  

Also Read: Weekly Market Wrap: D-Street tumbled for a second straight week amid global uncertainties. What lies ahead?

Economic data: The coming week is also going to be the start of a new month. Both cement and auto stocks will be buzzing on monthly sales figures. Investors will be waiting for India's fiscal deficit data scheduled to be released on October 31. On November 1, the S&P Global Manufacturing PMI will be released. S&P Global Composite PMI, S&P Global Services PMI, Bank Loan growth, and Deposit growth are scheduled to be released on November 3. 

Quarterly results: In the coming week, traders will also be tracking a slew of earnings from the industry’s big-wigs, like State Bank of India, Tata Motors, Bharti Airtel, Gail (India), Indian Oil Corporation, Jindal Steel and Power, Larsen and Toubro, Hero Motocorp, Sun Pharmaceutical Industries, Tata Steel, Adani Enterprises, Adani Power, Adani Green Energy, and Britannia Industries. 

Among the major firms scheduled to release their quarterly results this week are Godrej Properties, Dabur India, DLF, TVS Motor Company, Escorts Kubota, IDFC, MRF, Titan Company, Zomato, J K Cement, Marico, Tata Consumer Products, Godrej Consumer Products, Procter & Gamble Hygiene & Health Care, JK Tyre & Industries, and Ambuja Cements.

US market data: On the global front, investors would be eyeing important economic data from the United States, starting with the Dallas Fed Manufacturing Index on October 30 followed by Redbook, Chicago PMI on October 31, ISM Manufacturing Employment, Fed rate decision on November 1, Fed Press Conference, Initial Jobless Claims, Factory Orders on November 2, Non-Farm Payrolls, and Unemployment Rate on November 3. 

Trends in global markets: Deepak Jasani, head of retail research at HDFC Securities, said that Nifty snapped a six-day losing streak on October 27 and ended higher aided by positive global cues. "Asian markets mostly rose after data showed the U.S. economy was growing robustly and as robust forecasts from Amazon and Intel along with a pullback in Treasury yields lifted mega-caps. European stocks were mixed on Friday as weak corporate earnings offset robust U.S. economic data released overnight. Energy stocks outperformed as oil prices surged on concerns over a widening of the Israel-Hamas conflict." 

Technical Outlook: Jasani said that Nifty reversed the downtrend on October 27 but low volumes on such a day remained a concern. "In the process, it filled the down gap on daily charts formed on the previous day. Nifty could now head towards 19229-19298-19432 levels over the next few days while 18826-19047 band could provide support on down moves." 

Bank Nifty: Rupak De, Senior Technical analyst at LKP Securities, said that after a consolidation breakdown on the daily chart, Bank Nifty experienced a 2,000-point correction in a short period.

"The index appeared somewhat oversold, leading to a pullback on Friday. However, the sentiment remains predominantly bearish, and any upward movements may still face selling pressure. On the upper side, 43000 could serve as a significant resistance level, as call writers have established substantial positions there. Support can be observed at 42500, where writers have a strong presence," De said.