By Anand James
Five more states in quick succession going into polls late this year, in addition to general elections in 2024 had made Karnataka a battle ground, which markets had also had been following, given how it responded last week, despite US CPI returning weak numbers. An anti incumbency wave was already priced last week, which should cushion any volatility that may Monday would have to face, as it weighs the margin of victory.
Earnings season provides stock specific opportunities
Earnings season is still on, meanwhile, providing a window for stock specific moves. Though around 64% of NSE Nifty 50 stocks have announced results, only about 39% of NSE Nifty 500 stocks have done so. That 60% of those have declared profits keeps the positivity of the month running, it will require more to launch further leaps.
Sectoral outlook
Sectorally, auto stocks shone the brightest, with auto index registering a 4.3% gain week on week, and 61.5% auto stocks in the F&O segment witnessing long build up. Private banks were the second best gainers last week, and would play an important role next week; NSE Nifty Bank within touching distance of the record peak it last witnessed in 2022. While 44,000 vicinity would be a major moment sucker early in the week, Friday’s clean break above 43,700 lends support for a leap towards 44,400. Towards this end, we will go in next week penciling 43,700/43,600 region as pivotal for Bank Nifty.
(Anand James,Chief Market Strategist, Geojit Financial Services. Views expressed are author’s own. Please consult your financial advisor before investing.)