Inflation, Q2 earnings to set the tone for stock mkts: Experts

According to Nomura India, WPI inflation is at 7.87 percent in September from 7.55 percent in August.

New Delhi: The stock markets are likely to see choppy trading this week as investors will be influenced by September inflation data and a bunch of second quarter corporate results, say analysts.

Market experts said the focus has turned to wholesale inflation data which is scheduled for Monday release as it may decide Reserve Bank's next move when it meets for the second quarter monetary policy review on October 30. On Friday, consumer inflation for September showed signs of easing.

"Inflation data will come out on October 15, and will be closely watched. Also, quarterly results have started and will be in focus for deciding further market trend," Rakesh Goel, Vice President, Bonanza Portfolio said.

According to Nomura India, WPI inflation is at 7.87 percent in September from 7.55 percent in August.

Monday will also see Reliance Industries, which has significant influence over 30-share Sensex, declaring its Q2 numbers. Other major earnings slated to hit this week include Axis Bank (October 15), HCL Technologies (October 17), ACC, Ambuja Cement (October 18), ITC, TCS (October 19) and Bajaj Auto, UltraTech Cement (October 20).

Analysts said the second quarter earnings from RIL will be the key event to watch out for in the near-term.

Alex Mathews, Head Research, Geojit BNP Paribas Financial Services said: "Investors are waiting for inflation data. Besides the next trigger for markets will be RIL's result."

The BSE benchmark Sensex last week snapped a five-week winning spree by tumbling 263 points to close at 18,675.

Likewse, the NSE 50-share Nifty dropped by 70.90 points, or 1.23 percent, to finish at 5,676.05.

Talking about the market's volatility, brokerage ICICIdirect said India VIX remained sideways and hovered around its 50 DMA levels. "With no major surge in volatility index, Nifty may continue to exhibit its range bound movement," it added.

On the upside, Nifty resistances lie at 5740-5899 while on the downside, a trendline can provide support for Nifty at 5,610-5,540 levels, said Nagji K Rita, CMD, Inventure Growth & Securities.