Nifty Dips: 7 Key Factors Including FII Action and Hyundai IPO That Could Shape Markets This Week!

Last Friday, Nifty ended the week down by 0.20%, mainly due to losses in bank and FMCG stocks. When trading resumes on Monday, several important events could influence the market.

Nifty closed at 24,964.25, down by 34.20 points or 0.14%. The market has broken the psychological barrier of 25,000 for two consecutive days, which may suggest ongoing weakness, according to Tejas Shah, a technical analyst at JM Financial & BlinkX. He noted that bearish traders are taking advantage of every small rally to short-sell.

Here are seven factors to watch this week:

1. Quarterly Earnings Reports
   Around 120 companies will announce their earnings for the July-September quarter this week. This includes major Nifty companies such as HCL Technologies, Reliance Industries, HDFC Life Insurance, Bajaj Auto, Axis Bank, Infosys, Wipro, Nestle India, LTIMindtree, HDFC Bank, Kotak Mahindra Bank, and Tech Mahindra. The market will also react to earnings reports from Avenue Supermarts and Network18, which were released on Saturday.
2. Hyundai IPO
   The highly anticipated IPO of Hyundai Motor India will open for subscriptions on Tuesday, October 15. This ₹27,870 crore IPO is an offer for sale where Hyundai Motor Company will sell 14.2 crore shares. The price range is set at ₹1,865 to ₹1,960 per share. Additionally, two other SME IPOs from Lakshya Powertech and Freshara Agro will also open next week. The market will see three new listings, including Garuda Construction, which opened last week.
3. US Markets
   Indian markets will likely take cues from global markets, particularly Wall Street. On Friday, US markets ended on a positive note, with the Dow 30 rising by 0.97%, while the S&P 500 and Nasdaq Composite saw minor declines.
4. FII/DII Activity
   On Friday, foreign institutional investors (FIIs) were net sellers, pulling out ₹4,162.66 crore from Indian equities. In contrast, domestic institutional investors (DIIs) were net buyers at ₹3,730.87 crore. Overall, FIIs have sold a total of ₹58,711 crore in October, significantly reducing their investments compared to previous months.
5. Technical Factors
   The market experienced a slight dip but found support and entered a consolidation phase, according to Osho Krishan, a senior analyst at Angel One. The 50-day exponential moving average (DEMA) is a significant barrier in the short term, around 25,050 to 25,080. A breakout above this level could boost bullish momentum. The intermediate resistance zone is around 25,250 to 25,300. Conversely, the recent low of 24,800 to 24,700 may provide strong support, but dropping below this could trigger further declines.
6. Rupee vs Dollar
   The rupee fell below the 84 mark against the dollar for the first time, closing at 84.06 on Friday, down from 83.94. This marks the lowest closing value, and the Reserve Bank of India has been actively trying to prevent large fluctuations in the currency market. Some analysts suggest the RBI allowed this drop for tactical reasons. The dollar’s strength is also due to reduced expectations of a rate cut from the US Federal Reserve in November.
7. Crude Oil Prices
   Oil prices are crucial for markets as they impact inflation and central bank policies worldwide. Crude prices remain volatile due to uncertainties related to conflicts in the Middle East. On Friday, US WTI oil contracts rose slightly to $75.49, while Brent oil futures were around $79.04. Higher crude prices could raise inflation concerns, which is not good news for stock markets.