It turned out to be a flattish trading week, with the index falling on Monday before regaining strength and closing a little shy of 100 points higher than its previous close. As crude decisively broke down past its previous wave low of $71, we may now see prices heading even lower over the next few weeks, boosting sentiments. On the macro front, trade deficit for Oct-18 shot up to USD 17.1 Bn against the 5-month low of $14 Bn in Sept-18. The Index of Industrial Production rose 4.5 percent year-on-year in September, compared with a 4.1 percent growth in the same month last year. IIP growth has been declining steadily since hitting 6.9% in June this year.
On the corporate results front, Coal India delivered impressive results; with its quarterly profits jumping eight-fold. The woes continued for PSU banks, with United Bank of India, Central Bank, and Bank of India registered losses of 883 Cr, 924 Cr and 1156 Cr, respectively. The bank NIFTY, however, stayed more or less flat on a week on week basis.
The market will likely await bank loan growth data and GDP growth data that’s due to come in later this month, before deciding its next course. For now, we’re likely to see another flattish week ahead with a mildly bullish trend; 11,000 continues to remain the next target for the index, but it doesn’t look like its going to get there in a tearaway fashion.
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