When the Indian markets open tomorrow, what to expect

Due to the nationwide Dussehra celebration, Indian marketplaces are closed on Wednesday. As investors get ready for the second-quarter earnings season for FY23, both benchmark indices—the Sensex and the Nifty 50—rose more than 2% during the most recent trading session. On Thursday, the markets will begin trading, and their performance will probably follow global trends. However, experts advise traders to purchase on intraday corrections and sell on rallies as the market’s near-term structure appears favourable.

Markets had a significant surge on Tuesday, driven by widespread purchasing across sectoral indices. The best-performing sectors included banking, capital goods, metals, and IT stocks. Small- and mid-cap stocks rose sharply as well. The value of the Indian rupee increased, and international investment increased as well. With declining bond yields, rising crude oil prices, and a decline in the dollar index, the mood on the world’s equities markets was bullish overall.

At 58,065.47, the sensex closed higher by 1,276.66 points, or 2.25%. At 17,274.30, the Nifty 50 closed up 386.95 points, or 2.29%, from its previous close.
On Tuesday at the interbank foreign exchange market, the Indian rupee strengthened against the dollar to settle at 81.52 per dollar. Inflows of foreign investors’ (FII) capital into the stock market increased on October 4 to a total of 1,344.63 crore, up from inflows of 590.58 crore on October 3.

The market suffered significant losses for the first nine months of the year as central bank officials have made it increasingly evident that interest rate increases and monetary tightening will continue, according to Mitul Shah, Head of Research at Reliance Securitie
Shah added: “Markets are anticipating the release of the 2QFY23 earnings results starting the next week in order to get additional indications. Several central banks are fast boosting their policy rates, and as a result, the world’s central banks are battling inflation. To stop increasing inflation, the RBI increased its benchmark repo rate by 50 basis points. With another rate hike of 35 basis points anticipated for December 22, the RBI may need to keep up with the tightening of monetary policy. The US and Europe are most likely headed towards a recession, but India is most likely preventing it. The market has reacted favourably to the discussion on India’s growth trends and the prediction of 7% GDP growth and 6.7% inflation for FY23.”

On October 10, the TCS Q2 earnings are slated to be released. The quarterly results of IT stocks will be the main topic of discussion. On October 12, competitors HCL Tech and Wipro will release their Q2 financial results, while Infosys and Mindtree plan to do the same on October 13.

The Bajaj Auto Q2 results, which will be released on October 14, will be closely observed among automobiles. The banking industry is anticipating the release of HDFC Bank’s Q2 earnings on October 15.

Accordingly, more businesses will make their Q2 announcements in the coming days.

Rupak De, Senior Technical Analyst at LKP Securities, commented on the Nifty 50: “On the daily chart, the Nifty has risen following a period of consolidation, indicating an increase in market participants’ optimism. The index is in a positive position because it is above the 200DMA. A bullish crossover has been entered by the momentum indicator. The immediate trend appears to be favourable. A clear rise above 17300 might spark a significant market rally. Support is located at 17090 on the lower end, and resistance may be seen around 17600/17725 on the upper end.”

Markets have a positive view for the foreseeable future. Kotak Securities’ Shrikant Chouhan, Head of Equity Research (Retail), stated: “Although the short-term market structure is favourable, range-bound activity may soon occur due to a brief overbought scenario. For the time being, the main support and resistance levels for the Nifty are 17200–17150/57800–57600 for traders and 17400–17425/58300–58400 for Nifty. The best trading technique for day traders would be to buy on intraday corrections and sell on rallies.”