PMI, Auto Sales, and Global Economic Indicators Set to Drive Next Week’s Market – Manufacturing Sector
As we approach the upcoming week, there are several key economic indicators both domestically and globally that will shape the market outlook. Keep an eye out for important data releases such as India’s Current Account Q3, India Bank Loan Growth, HSBC Manufacturing PMI of India for December, India’s Infrastructure Output, US Fed Balance Sheet, US Initial Jobless Claims, and US ISM Manufacturing PMI.
Last week, the market saw gains with the Sensex closing at 78,699, up 657 points or 0.84%, and the Nifty closing at 23,813, up 225 points or 0.96%. Pharma and healthcare stocks were among the top gainers, fueled by a rise in banking shares. During the trading period 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 while domestic institutional investors (DIIs) poured in Rs 10,927 crore in the cash market.
Looking ahead, experts in the field have insights to share. Santosh Meena, Head of Research at Swastika Investmart, highlighted the rupee’s recent weakness and indicated that upcoming events, such as the release of the current account deficit numbers on December 31, could impact currency movements. Keep an eye on monthly auto sales data as well, as any positive surprises in the auto sector could lift market sentiment.
Puneet Singhania, Director at Master Trust Group, noted that the Nifty has consistently found support around the 23,650 level on the daily chart. Ending the week with an inside candle on the weekly chart following significant selling in the previous week, there is potential for the Nifty to see fresh buying if it sustains above 23,950. However, a breach below the support level could lead to increased selling pressure, possibly pushing the index down towards the 23,200 mark.
As we move into the new week, these insights and upcoming economic data points will be crucial in navigating the market landscape. Stay informed and be prepared for potential opportunities and challenges ahead.
