Next Week’s Market Outlook: PMI, Auto Sales, and Global Economic Cues
Next week’s market outlook hinges on a few key factors, both at home and globally. Keep an eye on India’s Current Account Q3, India Bank Loan Growth, HSBC Manufacturing PMI of India (Dec), India’s Infrastructure Output, US Fed Balance Sheet, US Initial Jobless Claims, and US ISM Manufacturing PMI for important economic data that could shape market trends.
Last week, we saw gains in the market’s benchmark indices. The Sensex closed at 78,699, up 657 points or 0.84%, while the Nifty closed at 23,813, up 225 points or 0.96%. Pharma and healthcare sectors performed well, with banking stocks seeing a boost.
During the trading session from December 23 to December 27 (excluding the Christmas holiday on the 25th), foreign institutional investors (FIIs) sold Rs 6,322 crore in the stock market. On the flip side, domestic institutional investors (DIIs) poured Rs 10,927 crore into the cash market.
Looking ahead, Santosh Meena, Head of Research at Swastika Investmart, noted that the rupee showed weakness last week, which could be impacted by the upcoming release of current account deficit numbers on December 31. Keep an eye on monthly auto sales data as well, as any positive surprise in the auto sector could lift market sentiment.
Puneet Singhania, Director at Master Trust Group, highlighted technical support levels for the Nifty, emphasizing the importance of levels like 23,650 and 23,950 for potential market movements. A breach below support could lead to intensified selling, while staying above key levels could trigger fresh buying towards 24,200.
As we head into the next week, stay informed about these economic cues and data points to navigate the market landscape effectively. Remember, markets can be volatile, so it’s always wise to stay informed and be prepared for potential shifts.
