NEW DELHI: Amid drop in crude oil rates, falling dollar index and buying by FIIs, the domestic equity market gained over a percent last week. Sensex made a new record high at 62,447.73 level and Nifty is just inches away from its peak as it settled at 18,512.7 levels.
“Going ahead, the lack of strong fundamental triggers will limit the upside, keeping the market volatile in the short term. The Fed Chair’s speech, which is scheduled for next week, and the release of other significant macroeconomic data will influence the market’s future trajectory,” Vinod Nair, Head of Research at
, said.
Here are 9 factors to track this week:
FII flows
NSDL data shows that FIIs have bought equity worth Rs 31,630 crore till November 25th. “FII investment is showing a distinctly positive trend in November. FIIs have been buyers in financial services, IT, autos and capital goods,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
US jobless claims data
On Thursday, market participants would be tracking cues from the US initial jobless claims data. On the same day, the US Fed would also release its Beige Book of regional economic activity.
Domestic macro numbers
In the coming week, participants will be focusing on key macroeconomic data viz. GDP numbers, core sectors data, manufacturing and services PMI for cues.
Crude oil rates
Crude oil prices posted their third consecutive weekly declines after hitting 10-month lows this week. Brent ended the week down 4.6% while WTI fell 4.7% amid worries about Chinese demand and haggling over a Western price cap on Russian oil.
Dollar index
The trajectory of the US dollar index would be a key trigger for FII inflows to Dalal Street. The index was around 106. The rupee settled almost flat at 81.71 against the US currency on Friday as month-end dollar demand from oil importers offset gains from a weak greenback and forex inflows.
Global markets
The performance of the global indices especially the US will remain on the radar. Dow Jones Industrial has reached the critical hurdle of the previous swing high of around 34,300 and its break could further fuel the rally, analysts said.
Auto sales
Auto stocks would be in focus this week as auto companies release their monthly wholesale data on December 1.
Fed Chair’s speech
US Fed Chair Jerome would be on Wednesday night. Market participants would be looking for cues on further rate hikes in December after FOMC meeting minutes hinted that the rate hike cycle may be slowing down.
Technical factors
Chart readers expect the prevailing trend to continue and expect Nifty to scale 18,700 first and then to a new milestone of 19,000. “On the downside, the 18,100 zone would provide the needed support in case of any dip. Amid all, it would be important to see how the broader market participation pans out as that would play a critical role in strengthening the trend,” said Ajit Mishra, VP – Technical Research,
Broking.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
