Most of the global markets have not had a fair start to the month. However, the remaining part of the month could be better for investors if historical data is anything to go by. According to analysts, October is a positive month for risky assets. It often starts badly but ends strong. Between 1998 and 2017, the average return over the first 10 days of October was a negative 0.4%. The rest of the month was 2 %.
Escorts investors to turn positive
After a constant downfall of almost 50% from Rs. 1000 to Rs. 550 in Escorts which is one of the biggest domestic tractor manufacturers, is again beginning to see investor attention. According to some fund managers, it would be a good long-term buy, given the robust prospectus of trader sales after the government’s push towards raising farm incomes, and good monsoons. The stock closed at Rs. 601 on Friday.
Short covering to Spur gains
Markets are likely to expand rise on the back of unwinding short positions. The Nifty could move towards 10,600-10,650 points in the coming days. However, volatility may persist as quarterly results pour in and global cues dictate market direction.”Traders can consider taking stock-specific bets and avoid aggressive trades on Nifty. Several stocks where valuations are now attractive can be considered. Private banks and metal stocks look attractive.
An event this week to focus:
15- October: On Monday, India-WPI, imports, exports and trade balance data.
US- Empire manufacturing index
UK- Rightmove house prices index
Results: Indiabulls Housing Finance and Indusland Bank
16-October: On Tuesday, US- Industrial production and capacity utilization figures
US- NAHB housing market index
UK-ILO unemployment rate and employment change figures
China –PPI & CPI Figures
Results: Hero MotoCorp, Infosys & Federal Bank
17-October: On Wednesday, UK-RPI, CPI & Core CPI data
Results: Reliance Industries, Havells & ACC
18-19 October: On Thursday-Friday, China-GDP data & IIP figures
Results: Ultratech Cement
20-October: On Saturday, Results: HDFC Bank
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