New Delhi
The market outlook for the upcoming week will be significantly influenced by several critical factors, including the results of the US Presidential Election, the US Federal Reserve’s interest rate decision, Foreign Institutional Investor (FII) activities, and major macroeconomic indicators like the Purchasing Managers’ Index (PMI), experts said on Sunday.
Last week, Indian markets closed on a positive note, buoyed by strong performances from public sector banks in Q2 and a decline in oil prices, which alleviated investor concerns regarding the Middle East. The Nifty index rose by 123 points (0.51%) to settle at 24,304, while the Sensex increased by 321 points (0.41%) to reach 79,724.
There was notable sectoral rotation observed; the previously strong IT sector fell by approximately 4%, while the Bank Nifty gained around 1.75%. Positive quarterly results from companies like ICICI Bank, Federal Bank, and L&T, alongside robust domestic economic data, supported market sentiment. For instance, India’s fiscal deficit for April-September 2024 stood at Rs 4.75 lakh crore, or 29.4% of the annual target.
Analysts suggest that Nifty faces resistance at the 24,500 level, with immediate support between 24,000 and 23,900. A break below this could lead to a test of the 200-DMA at around 23,500. The Bank Nifty also showed strength but needs to maintain support near the 51,000 level to avoid further selling pressure. Upside movement may require a breach above 51,800, potentially leading towards 52,300, while the market is expected to remain range-bound in the interim.
