The stock market is expected to remain bullish this week. Factors such as US GDP figures and Federal Reserve Chairman Jerome Powell’s speech on market buying by foreign and domestic investors will determine how the market moves.
Siddharth Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, said, “Markets are gradually increasing and we expect this positive momentum to continue next week with strong FII inflows.
Market movement will be determined by five factors:
1. Powell’s speech and US GDP: Investors will keep an eye on US GDP data for the second quarter ending June 2024. After that, there will be a speech from Federal Reserve Chairman Jerome Powell on September 26. In the second estimate, June quarter GDP was 3%.
Additionally, market participants will also keep an eye on PCE prices and actual consumer spending for Q2-CY24, durable goods orders, personal income and spending, and new home sales data for the month of August.
Federal Reserve Chairman Jerome Powell will speak on September 26.
2. National economic data: Investors will focus on HSBC flash manufacturing and services PMI figures for September. These figures will be published on September 23. The manufacturing PMI rose from 58.1 to 57.5 in August. The services PMI fell from 60.3 to 60.9.
Additionally, foreign exchange reserves data for the week ending September 20 will be released. These will be released on September 27. India’s foreign exchange reserves increased by $223 million to $689.458 billion in the week ending September 13.
3. National and foreign investors: After the US Federal Reserve cut interest rates by 0.50%, foreign institutional investors (FIIs) bought Rs 14,064 crore on Friday alone. While domestic investors i.e. DIIs sold shares worth Rs 4,427 crore.
While over the past week, FIIs have purchased shares worth a net Rs 11,518 crore in the cash segment, but domestic institutional investors have prioritized profit booking during the week. Domestic investors sold shares worth Rs 634 crore.
4. Two motherboards and 9 SME IPOs: There will be 11 IPOs in the week starting September 23. 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 offer will open on September 25.
In the motherboard segment, this week, Western Carriers India, Arcade Developers and Northern Arc Capital will debut on the stock market on September 24. In the SME segment, 11 IPOs, including Popular Foundation and Deccan Transcon Leasing, will be listed.
Motherboard IPO Nameprice rangeopening dateclosing dateManba Finance₹114 to ₹12,023-September 20, 2024September 25, 2024KRN Heat₹209 to ₹22,025-September 20, 2024September 27, 2024
5. Global Market: Investors will also keep an eye on developments in global markets next week. On Friday, the Dow Jones in the US market rose slightly and closed at the level of 42,063. The Nasdaq fell by 0.36% and closed at 17,948.
Asian markets also rose on Friday. The Japanese 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 could cross 26,000 this week
Technically, Nifty 50 has broken the congestion zone of the last three weeks. The RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) momentum indicators are also showing bullish signals in the market.
Experts believe that the index could cross the psychological mark of 26,000 in the coming week. The market has immediate support at 25,500. Next, there is support at 25,300.
Last week, Sensex and Nifty hit an all-time high
After strong signals from global markets, Sensex hit a new all-time high of 84,694 and Nifty 25,849 on September 20. After the day’s session, the Sensex closed at 84,544 with a gain of 1,359 points.