The previous week was marked by notable volatility in stock markets, with an early downtrend reversed by a sharp rally on Friday, paring weekly losses. The Nifty closed up 1%, while the Sensex saw a gain of 1.2% in the last trading day. However, the Nifty 50 ended the week down 0.7%.
Investors now turn their attention to third-quarter results following the release of key data in the US and Indian markets last week.
Concerns persist over a possible interest rate hike by the US Federal Reserve, prompting foreign investors to sell Indian stocks. In the week ending October 14, foreign institutional investors sold $854 million worth of shares in Indian companies, a significant increase from the previous week.
While global markets may cause volatility, there is optimism about the Diwali shopping season, which could boost stocks and limit declines.
Experts recommend adopting a purchasing strategy in times of decline, focusing on stocks and sectors focused on the domestic economy, such as information technology, pharmaceuticals, consumer goods and sustainable initiatives.
Furthermore, the dollar’s movement remains under scrutiny due to global macroeconomic concerns, with the rupee hitting a record low of 82.3500 per dollar on Friday.
As far as technical indicators are concerned, although gains were made on Friday, the Nifty was still unable to break the previous week’s range. Volatility persists, reflected in the candles of the last three weeks, indicating uncertainty among traders.
More buying is anticipated as Nifty remains above the 17,100 level with a possibility of reaching 17,500 soon while key support lies at 16,800 for the coming sessions.
