There is not much economic data that will be released during the week but the market may be volatile due to monthly expiry. The IPO mart will also keep buzzing. Auto sales data and FII flows will also be on the radar.
“In a relatively quiet week for domestic economic data releases, the market is bound to track global cues for direction. The Manufacturing PMI index for September which is to be released next week will help in forming a view on business activities during the month,” said Vinod Nair, Head of Research at
.
Key factors that may drive the market next week:
Evergrande crisis
The investors will keep tracking the unfolding Evergrande crisis. Reports say the company has defaulted on its payment and is trying hard to restructure its loans. Meanwhile, the Chinese authorities are also preparing for a scenario where the real estate developers collapse.
FII flows
Foreign institutional investors are overall bullish on the market. They have invested Rs 13,536 crore so far in equities this month. Last week, they poured in a total of Rs 2,211 crore. If they continue their investments, the market may gallop to new highs.
Primary market
The IPO mart will keep buzzing next week as well. The initial public offer of Aditya Birla Sun Life AMC, sold in the price band of Rs 695-712 per equity share, will open on September 29 and will close on October 1. Besides, Paras Defence and Space Technologies, which saw record subscriptions, will likely debut on bourses on October 1.
Auto sales data
Investors and traders will also track the auto sales data published by vehicle makers during the week. Individual stocks may see wild movement if sales data surprise the Street.
“Considering the increased concerns around chip shortage and the resultant dampened sales prospects, monthly sales numbers of the automobile sector are sure to grab eyeballs to determine a future trend in auto stocks,” said Samco Research. .
F&O expiry
There could be some volatility in the market given futures and options contracts for the month are set to expire on the last day of September. The indices have been fairly volatile throughout the week already, pushing India VIX higher.
Nifty outlook
Nifty50 index closed the week again in green, after making a new high of 17,947. While Nifty is trading at new highs, BankNifty ended on a flat closing and continues to struggle around its previous all-time high. To maintain the bullish momentum, BankNifty will need to catch up.
“The immediate support on the downside for Nifty is now placed at 17,600. Traders are advised not to create aggressive longs at current levels, rather maintain a bullish bias and initiate longs on dips or around immediate supports,”…
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