New Delhi: According to experts, the market outlook for next week will be guided by the US Presidential Election results, the US Fed Interest Rate Decision, FII activities, and major macroeconomic data such as Indian and US PMI data.
Last week, markets closed with a modest gain. Strong performance by PSU banks in Q2 and a slump in oil prices in expectation of ease in retaliations in the Middle East aided investor sentiment. The Nifty was up 123 points, or 0.51 percent, at 24,304, and the Sensex was at 79,724, up 321 points, or 0.41 percent.
During the period, sectoral rotation was evident, as the previously strongest IT index fell by about 4 percent, while the lagging Bank Nifty index gained roughly 1.75 percent.
The stock market rose last week due to the good results presented by companies like ICICI Bank, Federal Bank, and L&T. Strong domestic economic data also supported the market.
India’s fiscal deficit in the April-September period of the current financial year stood at Rs 4.75 lakh crore. It is 29.4 per cent of the target for the financial year 2024-25. Last year, this figure was Rs 7.02 lakh crore.
FIIs continued their selling spree, offloading around Rs 14,000 crore last week, marking October as a record month for Foreign Institutional Investors’ (FIIs) outflows in the secondary market, totalling Rs 1.2 lakh crore. However, Domestic Institutional Investors (DIIs) countered this selling pressure by purchasing approximately Rs 1.07 lakh crore.
Santosh Meena, Head of Research, Swastika Investmart, said, “Nifty is struggling to hold above the 24,500 level, with immediate support at the 24,000–23,900 range. A breach below this could lead to a test of the 200-DMA at around 23,500. Above 24,500, resistance looms at the 24,650 clusters of the 200 and 100-DMAs, which could trigger a short-covering rally if surpassed.”
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Palka Arora Chopra, Director of Master Capital Services, said that Bank Nifty displayed strength this week, closing with a 1.75 percent gain and finding support near the 51,000 level. A breakdown below this support could increase selling pressure, potentially pulling the index down toward 50,500.
On the upside, buying interest is likely to emerge only above the 51800 level, which may take the index towards 52,300. Until then, the market may remain range-bound between 51,000 and 52,300.
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–IANS
