Stock market bullish hopes this week: 5 factors from US GDP figures to foreign investors will determine market movement

The stock market is expected to be bullish this week. Factors such as US GDP figures and Federal Reserve Chairman Jerome Powell's speech to buy into the market by foreign and domestic investors will determine market movements.

Siddharth Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services said, “Markets are slowly picking up and we expect this positive momentum to continue next week with strong FII inflows.

Market movement will be determined by five factors:

1. Powell Speech and US GDP: Investors will be watching US GDP data for the second quarter ending June 2024. This will be followed by a speech by Federal Reserve Chairman Jerome Powell on September 26. In the second estimate, GDP for the June quarter was 3%.

Additionally, market participants will also be watching for PCE prices and real consumer spending for Q2-CY24, durable goods orders, personal income and spending, and new home sales data for August.

Federal Reserve Chairman Jerome Powell will speak on September 26.

2. Local Economic Data: Investors will focus on the HSBC Manufacturing and Services PMI flash number for September. These figures will be announced on September 23. Manufacturing PMI fell to 57.5 from 58.1 in August. Services PMI rose to 60.9 from 60.3.

Apart from this, foreign exchange reserves data for the week ending September 20 will be released. It will release on 27th September. India's foreign exchange reserves increased by $223 million to $689.458 billion in the week ended September 13.

3. Domestic and Foreign Investors: After the US Federal Reserve cut interest rates by 0.50%, Foreign Institutional Investors i.e. FIIs on Friday alone added Rs. 14,064 crore was purchased. While domestic investors i.e. DIIs invested Rs. 4,427 crore shares were sold.

While during last week FIIA in cash segment Rs. 11,518 crore worth of shares were bought, but domestic institutional investors prioritized profit booking in the week. Local investors have invested Rs. 634 crore shares were sold.

4. Two Main Boards and 9 SME IPOs: There will be 11 IPOs in the week starting September 23. 2 of them are main board IPOs. Manba Finance Rs. 151 crore IPO will open for subscription on September 23, while KRN Heat's offer will open on September 25.

In the mainboard segment, this week Western Carriers India, Arcade Developers and Northern Arch Capital will make their stock market debut on September 24. From the SME segment, 11 IPOs will be listed, including popular foundations, Deccan Transcon Leasing.

5. Global Market: Investors will also be watching how global markets perform next week. On Friday, the Dow Jones of the American market closed marginally higher at 42,063. The Nasdaq closed down 0.36% at 17,948.

Asian markets also saw a jump on Friday. Japan's Nikkei closed up 1.53%. At the same time, Hong Kong's Hang Seng index rose 1.36%. China's Shanghai Composite Index closed up 0.029%.

Nifty may cross 26,000 this week

Technically, the Nifty 50 has broken the congestion zone of the last three weeks. Momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are also showing bullish signs in the market.

Experts feel that the index may cross the psychological mark of 26,000 in the coming week. The market has immediate support at 25,500. Then there is support at 25,300.

Sensex and Nifty made all-time highs last week

Following strong cues from global markets, Sensex hit a new all-time high of 84,694 and Nifty of 25,849 on September 20. After the day's trade, the Sensex closed up 1359 points at 84,544.