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Monthly Market Roundup Market Outlook: November
Going ahead, Indian equity markets are in a bull
The bulls continued their boosted market sentiments. phase and look positive. Government is not leaving
party on Dalal Street with Further, global markets any stone unturned to bring the economy on track.
markets delivering robust rallied on expectations that The mega announcement on bank recapitalization
returns of 6% in October, the US Fed will leave rates will strengthen banks which will lead to more jobs,
its best monthly gain since unchanged also helped more growth and encourage investment. Market
March 2016. Benchmark investor sentiment. participants will closely watch GST council meeting,
indices Sensex and Nifty implementation of bank recapitalization and road
touched record high levels The month finally ended building programme. Apart from this, Q2FY18
of 33340.17 and 10384.50 with upward bias as S&P ongoing corporate earnings, US FOMC meeting,
respectively after the BSE Sensex delivered BOE monetary policy, BOJ monetary Policy, FIIs
government announced positive returns of 6.17% trend, currency movement and crude oil price
unprecedented measure to settle at 33213.13 and movement are the major factors which will decide
of recapitalizing public Nifty50 gained 5.59% the market direction. We recommend investors to
sector banks to the tune ending the month at stay invested in fundamentally sound companies for
of Rs 2.11 lakh crore and 10335.30. long term.
a massive road building Nifty Technical Outlook: November
programme Rs 6.92 lakh On the institutional side,
crore. PSU banks and infra foreign institutional Nifty
stocks pushed the market investors (FIIs) bought Rs
to fresh record high levels. 3,054.97 crore worth of On the monthly chart, after two months of consolidation
Apart from this, early equities during the month we are observing strong bull candle which suggests that
opinion polls predicted while domestic mutual upside momentum is likely to continue. In the coming
victory for BJP in Gujarat fund houses continued month if Nifty trades and closes above 10442 level then
and Himachal Pradesh their buying spree with net it is likely to test 10604 – 10765 – 10954 levels. However,
assembly elections also purchases of Rs 8,620.70 if Nifty trades and closes below 10227 level then it can
crore in October 2017. test 10066 – 9905 – 9717 levels.
Broadly, we are of the opinion that for current month
Economic Data Wrap Up – October 9905 remains strong support for the markets. Hence,
as long as Nifty holds this mentioned level we are of
¡ India's Sep Nikkei to 2.60% from 3.24% in the opinion that Nifty may test 10700 – 10900 levels in
manufacturing PMI at 51.2 Aug. couple of months.
unchanged from Aug.
¡ India’s Sep trade deficit
¡ India’s Sep Nikkei Services fell to $8.98 bln from
PMI rose to 50.7 from 47.5 in $11.64 bln in Aug.
Aug.
¡ India’s Sep core sector
¡ India’s Aug IIP growth rose growth rose to 5.2% from
to 4.3% from 0.9% in Jul. 4.4% in Aug.
¡ India’s Sep CPI inflation fell ¡ India’s Apr-Sep fiscal
to 3.28% from 3.36% in Aug. deficit rose to Rs 4.99 trln
from Rs 4.48 trln YoY.
¡ India’s Sep WPI inflation fell
3 ARIHANT CAPITAL ¡ novembER 2017
