The stock market is expected to remain bullish this week. Factors such as US GDP data and Federal Reserve Chairman Jerome Powell's speech to purchases by foreign and domestic investors in the market will determine the market movement.
Siddharth Khemka, Research Head, Wealth Management, Motilal Oswal Financial Services, said, “Markets are gradually moving higher and we expect this positive momentum to continue next week with strong FII inflows.”
The market movement will be decided by five factors:
1. Powell Speech and US GDP: Investors will keep an eye on the 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, the GDP for the June quarter was 3%.
Besides, PCE prices and real consumer spending for Q2-CY24, durable goods orders, personal income and spending, and new home sales data for August will also be eyed by market participants.
2. Domestic economic data: Investors will be focused on the HSBC manufacturing and services PMI flash numbers for September. These figures will be released 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, the foreign exchange reserves data for the week ending on September 20 will be released. These will be released on September 27. In the week ending on September 13, India's foreign exchange reserves increased by $ 223 million to $ 689.458 billion.
3. Domestic and foreign investors: After the US Federal Reserve cut interest rates by 0.50%, foreign institutional investors (FIIs) bought shares worth Rs 14,064 crore on Friday alone. Whereas domestic investors (DIIs) sold shares worth Rs 4,427 crore.
During the last week, FIIs bought shares worth Rs 11,518 crore in the cash segment, but domestic institutional investors preferred profit booking during the week. DIIs sold shares worth Rs 634 crore.
4. Two mainboard and 9 SME IPOs: There will be 11 IPOs in the week starting September 23. Out of these, 2 are main board IPOs. Manba Finance's Rs 151 crore IPO will open for subscription on September 23, while KRN Heat's Rs 342 crore offer will open on September 25.
In the mainboard segment, Western Carriers India, Arcade Developers and Northern Arc Capital will debut in the stock market on September 24 this week. From the SME segment, 11 IPOs including Popular Foundation, Deccan Transcon Leasing will be listed.
5. Global market: Investors will also keep an eye on how the global markets perform next week. On Friday, the Dow Jones of the US market closed marginally higher at 42,063. On the other hand, the Nasdaq closed at 17,948, falling 0.36%.
Asian markets also witnessed a rise on Friday. Japan's Nikkei closed with a gain of 1.53%. Hong Kong's Hang Seng index rose by 1.36%. China's Shanghai Composite Index closed with a gain of 0.029%.
Nifty may cross 26,000 this week
Technically, Nifty50 has broken the congestion zone of the last three weeks. Momentum indicators RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are also indicating bullishness in the market.
Experts believe that the index can cross the psychological mark of 26,000 in the coming week. The market has immediate support at 25,500. After this, 25,300 is also a support for the market.
Last week Sensex and Nifty made all-time high
After strong signals from global markets, the Sensex made a new all-time high of 84,694 and the Nifty of 25,849 on September 20. After the day's trading, the Sensex closed at 84,544 with a gain of 1359 points.
Graphics Source: VaskarAssets
