The stock market is always abuzz with activity, and this week is no exception. Investors are keeping a close eye on various factors that could influence the direction of Dalal Street. This week, Dalal Street is abuzz with the F&O December series expiry, India’s fiscal deficit, and global market trends.
Key Events for the Week:
- Investors brace for F&O December series expiry, anticipating significant market volatility in this imminent and impactful event.
- Monitor key Indian economic data, including fiscal deficit, current account deficit, deposit, and bank loan growth for insights. These indicators provide insights into the country’s economic health.
- US Market Data: With the US markets closed on December 25 for Christmas, investors will be closely monitoring data such as the Chicago Fed National Activity Index, Redbook, Goods Trade Balance, Initial Jobless Claims, and more.
Market Outlook:
On December 22, Nifty, as per Deepak Jasani, HDFC Securities’ Head of Retail Research, closed higher following a seven-week rally. However, the week concluded with a 0.5% lower close. Nifty might encounter resistance around 21492-21553, with support at 21150. Jasani suggests a potential “sell on rise” pattern for the coming days.
Bank Nifty Analysis:
Kunal Shah, LKP Securities’ Senior Technical Analyst, highlights Bank Nifty withstood selling pressure, maintaining a vital support level at 47400. A failure to sustain above this level could lead to further declines, while a breakthrough resistance at 47700 may trigger short-covering and push the index higher.
Foreign Investment Trends:
Dr. V K Vijayakumar notes a positive shift in December’s FPI trends, reaching Rs 57,313 crore. Increased purchases in various sectors contribute to this surge. The decline in US bond yields acts as a driving factor. Anticipated declines in US interest rates suggest FPIs will continue increasing purchases in 2024.
Conclusion:
As the year-end nears, investors analyze economic indicators, global trends, and F&O series expiry. Understanding is vital for informed decisions. The market advises caution, emphasizing staying updated on developments. Investors must stay vigilant in the coming days.
