Stock Market News: Domestic equity benchmark indices, the Sensex and the Nifty 50, ended in green on Friday’s session led by by buying in financial, fast-moving consumer goods (FMCG), and pharma stocks.
According to analysts, Nifty 50 stuck to rebound gains as the bulls regrouped at session lows indicating ‘lack of bearish conviction’. However, a review of Nifty 50’s advances over time reveals that they were mostly directionless due to a cautious outlook and weak global clues. Amidst the debate between hawks and doves of the Federal Reserve’s ability to achieve its inflation target, sentiments at Dalal Street also stumbled.
On Friday, the 30-share BSE Sensex ended higher by 167.06 points or 0.23% at 71,595.49 level while the Nifty 50 closed at 21,782.50 level, up 64.55 points or 0.3%.
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The market will respond to both domestic and global economic data this week, as well as trends in the global stock market, foreign institutional investor (FII)/domestic institutional investors (DII) investment pattern, crude oil inventories, ongoing quarterly earnings seasons, and the movement of the rupee against the dollar.
“Some major economic data that could impact the market are the UK employment rate, inflation numbers, PII input data, GDP numbers, trade balance, US inflation, crude oil, Initial jobless claims, industrial production, Retail sales, building permits, Japan’s GDP and industrial production numbers, Eurozone Employment, GDP, industrial production and trade balance data. Domestic economic numbers will also be focused on such as Inflation data, Industrial production, trade balance, forex reserves,” said Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd.
Market Outlook For This Week
The index witnessed range-bound activity as the Nifty 50 oscillated in the 2% range throughout the week. Going ahead, we expect the index to prolong the consolidation in the broader range of 22,000–21,400 ahead of inflation data. This would help to form a higher base above the 50-day EMA and eventually pave the way for the next leg of the up move. In the process, stock-specific action would prevail as we approached the fag end of the earning season. Thus, accumulating quality stocks on dips would be a prudent strategy to adopt as immediate support is placed at 21,400, advised Dharmesh Shah, Assistant Vice President (AVP), ICICI Securities.
“We expect Bank Nifty to extend the consolidation in the broader range of 47,500–44,800 while sustaining above 52 weeks EMA. In the process, we expect public sector undertakings (PSU) banks and housing finance companies to endure their outperformance,” said Shah.
Stock recommendations by Dharmesh Shah
On stocks to buy this week, Dharmesh Shah recommended two stocks:
Buy Infosys Ltd in the range of ₹1,670–1,710 for the target of ₹1,920 with a stop loss of ₹1,598.
Buy Indian Hotel Co Ltd in the range of ₹520–534 for the target of ₹590 with a stop loss of ₹499.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 25/01/2024 (preceding date) or have no other financial interest and do not have any material conflict of interest.
The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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