Daily Markets Wrap - Oct 7, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty ended almost flat on Oct 07 after a volatile session. Nifty opened lower and kept falling to make an intra day bottom at 1210 Hrs. it recovered later to close almost flat. At close, Nifty was down 0.10% or 17.2 points at 17314.7.

Volumes on the NSE again dipped to below recent average. Among sectors, Consumer Durables and Telecom rose the most while Oil & Gas, Metals and IT fell the most. Smallcap index outperformed rising 0.30% even as the advance decline ratio remained positive at 1.26:1.

Asian stock markets were trading mostly lower on Friday, following the broadly negative cues from global markets overnight, as traders continue to be concerned about the outlook for interest rates and the impact higher rates will have on the economy. European stocks went in and out of positive territory on Friday, as investors awaited the release of an all-important U.S. job market report that is expected to help determine the path forward for Federal Reserve monetary policy. The battered Credit Suisse Group rose after announcing a $3 billion bond buyback to steady investors' nerves.

Nifty rose 1.29% over the week after falling for the previous three weeks. In the process it filled the downgap on weekly charts made in the previous week and nullified the extreme bearishness arising therefrom. On daily charts however the Nifty filled the upgap made on the previous day nullifying large bullishness. Overall Nifty's trend could remain range bound with mild bullish bias. By the coming week we will have an idea about the direction that the US Fed will like to take going by the non farm payrolls (due on Oct 07 evening) and inflation reports (due on Oct 13) due from US. The first batch of Q2 Indian corporate results will also start from the coming week and provide triggers for stock specific action. 17114-17497 could be the range for the Nifty in the coming week.

Source : Equity Bulls

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