what will be the correct reporting

Hello!

which one of the two will be the correct way of reporting

He said, "I shall go to the market" [This is to be turned into indirect speech]

1 He said he would go the market
Or
2 He said he would go to the market

Thanks in advance.

Ooops...Sorry for the mistake.

let me rephrase No 1 and No 2

1 He said he would go to the market
Or
2 He said he should go to the market

Now which one of the two will be the corrrect form of reporting, 'should' or 'would'?

Thank you

Number 1

If it were number 2, he would've had to have said "I should go to the market."

bubu,
Normally, the usage of "I shall go to he market" is rare. "I will go to the market" is a commom statement. Considering your sentance, 'He said that he would go to the market' is hopefully correct.

If someone says "I shall go to the market" or "I will go to the market" you can simply say "He said he will go to the market."

Cesar - as I know ppl are tought to use in these case "would" because it's reported speech. is it grammaticaly correct to use "will"?

Well, I have heard americans use both. Perhaps it's a matter of "taste?"

Check the following link; they say you can keep the same tense when changing direct speech to indirect speech.

http://www.grammarstation.com/servlet/GGuide?type=DISI

It would usually be "would". However, if he still hasn't gone to the market, you might use "will". For example, "He said he'll go to the market tomorrow."