Last week was great for the Indian stock market. Positive global cues, strong GDP data, and BJP’s massive victory in 3 states boosted investor confidence, leading to record highs for BSE Sensex and Nifty50. The market’s all-time high was driven by robust domestic GDP growth. The IT, consumer, auto, and realty sectors performed well, while mid & small caps continued to outperform. Overall, the market’s positive momentum reflects the country’s overall economic growth and stability, making it an attractive investment destination for both domestic and foreign investors.
Investors should be cautious as achieving the RBI’s 4% CPI inflation target may take time. Reduced rabi sowing and declining reservoir levels have raised concerns about potential increases in foodgrain prices, which impacted FMCG stocks negatively. In the upcoming week, investors should focus on crucial releases, including inflation data from India and the US. The outcome of the awaited Fed policy meeting will be pivotal in shaping market sentiments.
Where is Nifty50 headed?
Prashanth Tapse, Senior VP (Research), Mehta Equities: Indian stock market surged on Thursday with positive global cues and RBI’s raised growth forecast of 7%. Though cautious about inflation, the central bank remains optimistic about the country’s growth prospects, causing some intra-day volatility. Bulls are expected to dominate with Nifty finding support at 20777-20521 levels and resistance at 21121-21331 range.
Rupak De, Senior Technical Analyst at LKP Securities: Nifty rallied spectacularly last week, reflecting market optimism, but later consolidated. Call writers have maximum positions at 21000, a crucial level for the Nifty. On the upside, it could reach 21550. Put writers have significant positions at 20900 and 20800, below which profit booking may increase.
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas: Nifty has resumed its upward movement after a two-day consolidation, but the momentum indicator is not in sync. Hold long positions with a trailing stop loss. Crucial support is at 20860 – 20800, and a dip towards this zone is a buying opportunity. Immediate hurdle is at 21060 – 21100.
