Rohit Vaid Mumbai, December 11, 2011 : .The key equity indices will move during the week ahead based on macro-economic indicators.
These data points are combined with flow direction information from FIIs and US Fed rate decisions.
Besides, investors will look out for other major factors like global oil prices along with progression of Covid-19’s Omicron variant.
Last week, both the key indices – S&P BSE Sensex and NSE Nifty50 – gained the most in eight weeks on a relief rally from the overwhelming fears about Omicron variant of the coronavirus.
The bounce lost energy at the end of week, just before the US inflation data.
“The Nifty has bounced up from intra day lows and closed towards the day and week high.Advance decline ratio also remains firmly in the positive.17,613-17,700 is the next resistance band for the Nifty,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Nifty can continue the upward momentum in the initial part of the coming week unless we have a negative surprise from US inflation data, having said that building on gains at the same pace may be difficult.”
Siddhartha Khimeka, Head – Retail Research, Broking & Distribution, Motilal Oswal Financial Services, stated that investors would respond to US inflation data released over the weekend.The information is likely to be at higher levels than expected and may strengthen the Fed’s tapering plan and speed up interest rate increases.
“Thus Fed’s MPC due next week would be the key event to watch out for which could provide direction to the market.”
Besides, Khemka cited that despite uncertainty, the correction has made valuations comfortable and many stocks are available at attractive levels.
India’s consumer price index, or retail inflation numbers, will be released next week.
“The market trend in the coming week will be determined by the domestic and US November inflation data,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Ahead of the Fed meeting, global investors are keenly awaiting the US inflation data in order to gauge the Fed’s decision on rolling back economic stimulus.The market is expecting both domestic and US inflation to be higher than its previous month levels.”
(Rohit Vaid can be contacted at [email protected])
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