The Nifty and Sensex, two important stock market indexes in India, have had a good week, gaining 0.5% for the fourth week in a row. Investors are feeling hopeful because of the upcoming festive season, which usually makes people spend more money. This boost in consumer spending comes just in time for the holidays!
However, traders are being careful as they wait for big events this week, like the meeting of the US Federal Reserve. This is where they will discuss interest rates, which could affect the stock market.
Here are four key points to keep in mind:
1. US Fed Meeting: The stock market is closely watching the US Fed meeting on December 18, where a small rate cut (25 basis points) is expected. What the Fed says about the future will be very important.
2. Economic Data: Other banks, like the Bank of England and the Bank of Japan, are also meeting this week. The Bank of England is likely to keep interest rates the same, and Japan is not expected to raise rates either. Traders will pay attention to important reports like Manufacturing and Services PMIs.
3. Foreign Investment: Foreign investors (FIIs) have bought a lot of shares recently, totaling Rs 14,435 crore. While buying is good for the market, traders are watching closely because these investors can also sell quickly if they see better opportunities elsewhere.
4. Global Markets: The US stock market had a mixed week, with the S&P 500 and Dow going down, while the Nasdaq had a good week.
Technical Analysis: If the Nifty index moves above 24,800, it could keep rising and might reach between 25,200 and 25,500. On the downside, there is strong support between 24,300 and 24,400. Experts recommend buying selectively in stocks, especially in the IT and banking sectors.
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