Navigating market volatility: What to watch for Indian investors in the coming week of October

Mumbai: The coming week could prove pivotal for Indian stock markets as investors await a series of key events, including Q2 earnings, the US government shutdown, FOMC minutes, and other major economic data.

Companies will begin announcing their financial results for the July–September quarter (Q2) next week. Tata Consultancy Services (TCS) and Tata Elxsi are scheduled to release their September-quarter results on October 9.

The IPO market is also expected to draw attention, with the Tata Capital IPO opening next week and updates on LG Electronics’ IPO likely to influence investor sentiment.

Global cues remain under scrutiny, with the US Federal Open Market Committee (FOMC) set to release minutes from its September 16-17 meeting, offering insights into interest rate discussions. Investors are also closely monitoring the ongoing US government shutdown, which is expected to continue into next week amid a funding standoff between Democrats and Republicans.

From a technical perspective, analysts noted that Bank Nifty continues to hold above the 20-week EMA on the weekly chart, signalling sustained strength and supporting a broader bullish outlook. “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,” they added.

On the daily chart, Nifty found strong support near the 24,600 zone and rebounded higher, posting two consecutive green candles, reflecting renewed buying interest and improving sentiment.

Indian markets performed well in the previous week, with the Nifty gaining 239 points, or 0.97 per cent, to close at 24,894, and the Sensex rising 780 points, or 0.97 per cent, to end at 81,207.

Among sectoral indices, the Nifty PSU Bank led gains with a 4.43 per cent rise between September 29 and October 3, 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 evident in the 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 advanced 317 points, or 1.81 per cent, to settle at 17,787.

IANS