New Delhi: Experts say the market’s outlook for next week looks very positive. The Indian equity indices witnessed a sharp rally last week, as Sensex and Nifty both made new all-time highs of 85,978.25 and 26,277.35, respectively. Experts say the market outlook for next week looks very positive.
Movements in commodity prices, the US dollar index, and key macroeconomic data from the US will significantly influence the market’s outlook. However, geopolitical developments will also play a crucial role on the global stage.
On the domestic front, manufacturing and services PMI data, upcoming monthly auto sales data, and quarterly company results could drive stock-specific movements in the near term.
The market’s upward momentum last week, which saw the key benchmark indices, Nifty and Sensex, reaching fresh all-time highs, was largely driven by growing optimism about reducing borrowing costs. This was sparked by the US Federal Reserve’s key benchmark rate cut by 50 bps in the week ending September 20, a move that was followed by other major central banks, including RBI.
On Friday, the Sensex closed at 85,571, down 264 points or 0.31 percent, and the Nifty settled at 26,178, down 37 points or 0.14 percent.
Among sectoral indices, metal emerged as the top performer, followed by auto. The PBoC (People’s Bank of China) cut the amount of cash banks must hold as reserves by 50 basis points, the second reduction this year aimed at bolstering faltering economic growth.
Market sentiment was further bolstered by strong foreign inflows on the domestic front. In September, foreign institutional investors (FIIs) invested Rs 25,215.25 crore in the cash segment, while domestic institutional investors (DIIs) invested Rs 25,214.25 crore, a clear indication of the market’s attractiveness to international investors.
Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services, expressed his optimism, saying: “Nifty has delivered a strong weekly closing for the third consecutive month and is now trading above 26,000. The market sentiment is positive, with immediate resistance at 26,500, and a breakout above this level could propel the index towards 26,650.”
“On the downside, key support is at 25,900, with a breach potentially triggering selling pressure towards 25,600. Given the prevailing positive sentiment, we recommend a “buy on dip” strategy for traders looking to capitalise on any short-term correction,” Upadhyay added.
Santosh Meena, Head of Research at Swastika Investmart, reiterated the bullish momentum, saying: “Last week, Bank Nifty witnessed some profit booking around the 54,500 level. Immediate support levels are seen at 53,700, 53,300, and 53,000, with the bullish momentum persisting as long as it stays above the 53,000 mark. On the upside, resistance levels are marked at 54,500, 55,000, and 55,500.”
For more updates Subscribe to Media Eye News
–IANS
