The trading week before Diwali is all set to commence from October 21, 2024 onward. With the lack of any key occasions during this week, the Indian stock market is likely to continue a normal weekly trading session. There will be two days' holidays by default due to weekends. This is the last full-fledged trading week of October 2024, before Diwali firecrackers on the stock market kick in from October 29.
Which are the days the Indian stock market is opened next week?
October 21, October 22, October 23, October 24, and October 25.
Which are the days the Indian stock market is closed next week?
October 26 and October 27 are default holidays as they fall on Saturday and Sunday. And next week there is no special trading session by exchanges.
During the trading week from October 14-18, Sensex's weekly performance was down by 616.71 points or 0.75%. While Nifty 50 plunged by 178.30 points or 0.71%.
Last week, on Friday, the Sensex rose by 218 points to close at 81,225, while the Nifty gained 104 points to end the day at 24,854. The Nifty Bank index surged by 805 points, closing at 52,094, as banking stocks outshone other sectors. Despite Friday's recovery, the broader market ended its third consecutive week of losses. This marks the longest losing streak of 2024.
Stock Market Outlook From October 21-25:
Vinod Nair, Head of Research, at Geojit Financial Services said, "A sustained selling pressure from FPIs, muted Q2 earnings expectations, and elevated valuations acted as a headwind for the market. Insipid demand and volatility in input prices are the hindrance of a slowdown in earnings during the quarter. Geopolitical tensions and uncertainty ahead of the US presidential election paved the way for haven asset gold to climb a new record high."
A caution from an auto major about weak festival demand further added pressure on the indices. Bank Nifty, on the other hand, recouped the current week's losses on account of a positive start to the earnings season with lower-than-expected slippages, supporting large private banks, Nair added.
Geojit analysts are expecting the investment strategies favouring China over India to be tactically supported for the short term. However, the long-term outlook for the domestic market remains robust with stability in growth and a pickup in capex.
He said, "We expect the market to be range-bound in the short term with mixed bias, while investors should turn more sector- and stock-specific in such a time. The focus will be on large caps and growth areas like staples, agriculture, FMCG, consumption, power, digital, and infra. Buy-on dips will be the strategy on a short- to medium-term basis."
Technical Outlook:
Technically, on weekly charts it has formed a bearish candle on daily charts it is holding lower top formation, which is largely, negative, said Amol Athawale, VP- Technical Research, Kotak Securities.
Athawale added, "We are of the view that the larger market texture is still into the weak side but fresh selloff possible only after dismissal of 24650/80800. Below the same, the market could slip till 24500-24450/80500-80300. On the flip side, 24900/81500 could be the immediate resistance zone for the bulls. Post 24900/81500 the pullback momentum is likely to continue till 25000-25050/82000-82200."
For Bank Nifty, Athawale said, now, 50-day SMA would act as a trend decider level for the short-term traders. Above the same, it could move up to 20 days SMA or 52500. Further upside may also continue which could lift the index to 53000. However, below 50-day SMA or 52500. Uptrend would be vulnerable. Below the same, traders may prefer to exit from the trading long positions.
Diwali festival for 2024 is set to commence from October 28 and is expected to continue till November 3, 2024. The key dates in Diwali 2024 are - October 29th (Dhanteras), October 31st (Choti Diwali), November 01st (Lakshmi Puja), November 02nd (Govardhan Puja), and November 03rd (Bhai dooj).
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