New Delhi: The trend of the stock market will depend on the Reserve Bank of India Monetary Policy Committee (RBI-MPC) meeting to be held next week, Manufacturing and Services PMI data and several global economic data.
Last week was a great week for the stock market due to the victory of BJP-led alliance Mahayuti in Maharashtra elections. During this period, Nifty increased by 223 points or 0.94 percent to close at 24,131 and Sensex increased by 685 points or 0.87 percent to close at 79,802. However, due to global instability the market witnessed a lot of fluctuations. Banking shares played an important role in this rally. Bank Nifty closed at 52,055 with a rise of 920 points or 1.80 percent. During this period, shares of HDFC Bank, the country's largest private bank, made a new all-time high of Rs 1,836.
Last week, there has been a decline in selling by foreign institutional investors (FIIs) on a weekly basis. From November 25 to November 29, FIIs sold Rs 5,026 crore in cash. During this period, purchases worth Rs 6,924 crore were made by domestic institutional investors (DIIs). Vinod Nair, head of research, Geojit Financial Services, said that the market movement will depend on the upcoming economic data. The GDP growth rate in the second quarter of FY25 was 5.4 percent. Its market impact may be seen, but investors' eyes will be on RBI MPC. This time the repo rate is likely to remain the same, but due to low growth rate, the central bank may indicate a cut in interest rates in February.
Further said that other economic indicators such as services and manufacturing PMI data, auto sales and US jobs data will decide the market trend. Palka Arora Chopra, Director, Master Capital Services, says that Nifty has closed above the support of 23,800. This was the second consecutive week that Nifty has closed positive. The zone from 23,800 to 23,850 is an important support zone. If Nifty slips below this, it can go up to 23,400. A rally can be seen after 24,800.
He further said that Bank Nifty witnessed strength last week and has not broken its support zone of 51,750 to 51,850. If Bank Nifty slips from here then it can go up to 51,100 and 52,400 is a resistance level. If it breaks this then it can go up to 53,000.
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