Maharashtra: According to analysts, the market forecast for next week will be determined by factors such as the Fed rate decrease, Japan’s inflation statistics, and the activities of foreign institutional investors (FIIs).
One of the most anticipated events of the year, the US Federal Open Market Committee (FOMC) meeting, is scheduled for September 18. It is almost clear that this will signal the start of an interest rate-lowering cycle in the United States.
Japan’s inflation figures will be released next week, followed by the Bank of Japan’s (BoJ) monetary policy decision. Any decision that suggests further monetary tightening in Japan may increase concerns about the unwinding of the Yen-carry trade, as interest rates in Japan and the United States are moving in opposing directions. This might cause fresh volatility in global markets.
FII statistics, crude oil price movement, and the geopolitical landscape will influence domestic market sentiment.
Santosh Meena, Head of Research of Swastika Investmart Ltd, said, “On the technical charts, Nifty is currently trading at its all-time high, with 25,500 acting as an immediate resistance level.”
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“A breakout above the 25,500 level could trigger a rally toward the 26,000 mark. On the lower side, 25,000 has now become a crucial support level. Unless the NSE benchmark breaks below 25,000, the bullish momentum is expected to continue, and any move below this level may lead to profit booking,” Meena added.
Other market experts said, “Market focus will be on the upcoming FOMC meeting next week, while domestic market direction will also be influenced by domestic corporate earnings, which are forecasted to improve in Q2 on a QoQ basis.”
The Indian equity market rallied sharply and closed at new all-time highs last week. Between September 9 and September 13, the Sensex rose 1,707 points, or 2.10 percent, to 82,890, while the Nifty rose 504 points, or 2.03 percent, to 25,356.
Positive global indications, as well as robust buying by FIIs worth more than Rs 15000 crore, were key drivers of this rise.
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–IANS
