Earnings season, US shutdown, FOMC minutes likely to drive Indian markets next week

Mumbai, Oct 5 (IANS) The coming week will be crucial for Indian stock markets as key triggers such as Q2 earnings, the US government shutdown, FOMC minutes, and other major economic data are likely to determine market trends.

Starting next week, companies will begin announcing their financial results for the July-September quarter (Q2).

On October 9, Tata Consultancy Services (TCS) and Tata Elxsi are scheduled to release their September quarter results.

Meanwhile, the IPO market will also attract investors’ attention. The Tata Capital IPO is set to open next week, while updates regarding LG Electronics’ IPO are also expected to influence market sentiment.

The minutes of the US Federal Open Market Committee (FOMC) will be released, providing detailed insights into the discussions held during the meeting on September 16–17 regarding interest rate decisions.

Global investors are closely watching the US government shutdown, which is likely to continue into next week amid the funding standoff between Democrats and Republicans.

Commenting on the technical outlook, analysts said that on the weekly timeframe, Bank Nifty continues to hold firm above the 20-week EMA, suggesting sustained strength and supporting the broader bullish undertone.

“If selling pressure re-emerges and the index decisively breaks below 55,140, further downside towards 55,000 and 53,832 (200-day EMA) may unfold. On the upside, immediate resistance is placed at 55,850, followed by 56,000 and 56,400,” analysts added.

“On the daily timeframe, Nifty found strong support near the 24,600 zone and rebounded higher, posting two consecutive green candles, which reflects renewed buying interest and improving sentiment,” they added.

Meanwhile, Indian stock markets performed well in the previous week. The Nifty gained 239 points, or 0.97 per cent, to close at 24,894, while the Sensex rose 780 points, or 0.97 per cent, to end at 81,207.

Between September 29 and October 3, the Nifty PSU Bank index topped the sectoral chart with a 4.43 per cent rise, followed by Nifty Metal (up 3.93 per cent), Nifty Private Bank (up 2.53 per cent), Nifty Media (up 1.87 per cent), and Nifty PSE (up 2.77 per cent).

Buying interest was also seen in midcap and smallcap segments. The Nifty Midcap 100 index climbed 1,124 points, or 2 per cent, to close at 57,503, while the Nifty Smallcap 100 index advanced 317 points, or 1.81 per cent, to settle at 17,787.

--IANS

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