According to analysts, Nifty 50 stuck to rebound gains while the bulls regrouped at session lows indicating “lack of bearish conviction”. However, a review of the Nifty 50’s advances over time reveals that they have been largely directionless due to a cautious outlook and weak global indices. Amidst the debate between hawks and doves over the Federal Reserve’s ability to meet its inflation target, sentiments on 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%.
Also read: Wall Street week ahead: Investors eye inflation, industrial production data, key earnings
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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 investor (DII) investment pattern, crude oil inventory, ongoing quarterly earnings seasons, and the movement of the rupee against the dollar.
“Some important economic data that could influence the market are the UK employment rate, inflation numbers, PII input data, GDP numbers, trade balance, US inflation, 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 focus on such as Inflation data, Industrial production, trade balance, forex reserves, “said Arvinder Singh Nanda, Senior Vice President, by Master Capital Services Ltd.
Also read: Market cap of four most valuable firms jumps ₹2.18 lakh crores; LIC, SBI lead gainers
Market Outlook For This Week
The index witnessed a range-bound performance as the Nifty 50 oscillated in the 2% range throughout the week. Going forward, we expect the index to extend the consolidation in the broader 22,000-21,400 range ahead of inflation data. This would help 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 dominate as we approach the tail end of the earnings 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 wider range of 47,500–44,800 while maintaining above 52-week EMA. In the process, we expect public sector undertakings (PSUs) banks and housing finance companies to hold their upper performance,” Shah said.
Also read: Over 25 small stocks gain between 20-65% as index hits record; Balaji Telefilms, UCO Bank among winners
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 purpose of ₹1,920 with a stop loss of ₹1,598.
Buy Indian Hotel Co Ltd in the range of ₹520–534 for the purpose of ₹590 with a stop loss of ₹499.
Also read: Week Ahead: Inflation data, Q3 results, global cues among key market triggers this week
Disclaimer: The Research Analyst or his relatives or I-Sec does not have actual/beneficial ownership of 1% or more securities of the subject company, as of 01/25/2024 (earlier date) or has no other financial interest and does not have any material conflict of interest.
The views and recommendations above are those of individual analysts, experts and second-hand companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 12 Feb 2024, 06:28 IST