Market Outlook: Key Triggers for Next Week – US Fed policy, FII data, and Global Cues
Last week was a good one for Indian stock markets, with both the Sensex and Nifty showing a nearly 3% gain from their recent lows. It seems like a mix of global and domestic factors influenced this positive trend. The US markets’ performance and the Fed’s monetary policy decisions will continue to be important global factors to watch, while here at home, indicators like GDP growth, FII data, and inflation will shape market sentiment.
On Friday, the market experienced a significant turnaround after an initial drop, especially in sectors like telecom, tech, consumer durables, and IT, which saw a strong rally. Overall, for the week, the Nifty rose by 0.37% to 24,768 and the Sensex by 0.52% to 82,133. This marked the fourth consecutive week of gains for the Indian stock market.
Foreign Institutional Investors (FIIs) were net sellers in the cash market last week, while Domestic Institutional Investors (DIIs) provided support with a net investment of Rs 2,880 crore. Puneet Singhania, Director at Master Trust Group, mentioned that the Nifty 50 has taken on a bullish stance after breaking the resistance at 24,700, with strong support levels at 24,100 and 24,300. He suggested that buying at around 24,300-24,400 with a stop loss at 24,100 could be favorable, aiming for the psychological level of 25,000.
Senior Technical Analyst Pravesh Gour of Swastika Investmart noted that the Banknifty showed strong momentum, with immediate resistance at 53,800-54,000. Breaking above 54,000 could lead to further resistance at 54,350-54,500. On the downside, support levels are at 53,300 and 52,600. Overall, both experts see optimistic trends in the market, with opportunities for buying on dips and clear risk management levels.
