Sensex, Nifty this week: From RBI's interest rate decision to US trade balance, factors that may drive Dalal Street
This week, investors will be focusing on remaining Q3 results, RBI’s interest rate decision, deposit growth and bank loan growth data in India, along with balance of trade in the US, these are the major events that will keep the markets buzzing
- Feb 4, 2024,
- Updated Feb 4, 2024 2:05 PM IST
In the passing week, Indian markets posted hefty gains amid a growth-oriented budget from the government. Besides, positive macroeconomic data boosted the sentiments. This week, investors will be focusing on the remaining quarterly results of some major companies across the sectors. Besides RBI's interest rate decision, deposit growth and bank loan growth data in India, along with initial jobless claims, and balance of trade in the US are major market events that will keep the markets buzzing.
Quarterly results: This week, several companies are scheduled to release their quarterly earnings. From the healthcare and pharma sector, Fortis Healthcare, Lupin, Apollo Hospitals Enterprise, Biocon, and Zydus Lifesciences will announce the results.
Insurance behemoth LIC will also release its Q3 results. Besides these, Ashok Leyland, Bharti Airtel, Britannia Industries, Godrej Properties, Apollo Tyres, Cummins India, Nestle India, Power Grid Corporation of India, Escorts Kubota, Grasim Industries, MRF, PI Industries, SJVN, and Tata Power will be announcing their Q3 numbers.
Economic data: On the economy front, investors would be eyeing the data of HSBC Composite PMI Final and HSBC Services PMI Final, which is scheduled to be release on February 5.
Traders would also be waiting for the Reserve Bank of India (RBI) interest rate decision, which will be announced on February 8. RBI held its benchmark policy repo at 6.5% for the fifth consecutive meeting in December 2023 to ensure inflation stays within the central bank's 2-6% target range while supporting growth.
Besides, bank loan growth, deposit growth and foreign exchange reserves data are going to be release on February 9.
Also Read: Hot stocks for next week: ITC, Tanla Platforms, KPIT Technologies, CG Power and more
US market data: On the global front from the US, traders will first be eyeing S&P Global Composite PMI, S&P Global Services PMI, on February 5, followed by Redbook on February 6, Balance of Trade on February 7, Initial Jobless Claims on February 8 and Baker Hughes Oil Rig Count on February 9.
Vinod Nair, Head of Research at Geojit Financial Services, said: "A conservative interim budget had no slowdown effect on the market, which continued to grow on the pre-election rally."
He added: "The drastic fall in the fiscal deficit target is leading to a reduction in bond yields, which will lead to lowering of corporate borrowing costs, increasing incentives to step up investment. Furthermore, the FOMC tempers expectations that the central bank will soon slash interest rates and that inflation in the US is continuing to cool."
Technical outlook:
NIFTY: Rupak De, Senior Technical Analyst at the LKP Securities, said Nifty surpassed the 22,000 mark during the first half of the Friday session but subsequently formed a double top on the hourly chart.
"Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125. Conversely, a break below the support level at 21,500 could indicate a bearish momentum," he said, adding that in the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond.
Bank Nifty: Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, Bank Nifty bears regained control as the index failed to surpass the crucial level of 46,500 on a closing basis. He added the immediate support for the index is situated at 47,700, and a breach below this level is anticipated to intensify selling pressure, potentially pushing the index towards the 45,000 mark.
“Given the heightened volatility in the near term, traders are advised to approach the market with caution and implement strict risk management measures to navigate potential fluctuations," Shah said.
Also Read: IndiGo Q3 results: Profit more than doubles to Rs 2,998 crore
In the passing week, Indian markets posted hefty gains amid a growth-oriented budget from the government. Besides, positive macroeconomic data boosted the sentiments. This week, investors will be focusing on the remaining quarterly results of some major companies across the sectors. Besides RBI's interest rate decision, deposit growth and bank loan growth data in India, along with initial jobless claims, and balance of trade in the US are major market events that will keep the markets buzzing.
Quarterly results: This week, several companies are scheduled to release their quarterly earnings. From the healthcare and pharma sector, Fortis Healthcare, Lupin, Apollo Hospitals Enterprise, Biocon, and Zydus Lifesciences will announce the results.
Insurance behemoth LIC will also release its Q3 results. Besides these, Ashok Leyland, Bharti Airtel, Britannia Industries, Godrej Properties, Apollo Tyres, Cummins India, Nestle India, Power Grid Corporation of India, Escorts Kubota, Grasim Industries, MRF, PI Industries, SJVN, and Tata Power will be announcing their Q3 numbers.
Economic data: On the economy front, investors would be eyeing the data of HSBC Composite PMI Final and HSBC Services PMI Final, which is scheduled to be release on February 5.
Traders would also be waiting for the Reserve Bank of India (RBI) interest rate decision, which will be announced on February 8. RBI held its benchmark policy repo at 6.5% for the fifth consecutive meeting in December 2023 to ensure inflation stays within the central bank's 2-6% target range while supporting growth.
Besides, bank loan growth, deposit growth and foreign exchange reserves data are going to be release on February 9.
Also Read: Hot stocks for next week: ITC, Tanla Platforms, KPIT Technologies, CG Power and more
US market data: On the global front from the US, traders will first be eyeing S&P Global Composite PMI, S&P Global Services PMI, on February 5, followed by Redbook on February 6, Balance of Trade on February 7, Initial Jobless Claims on February 8 and Baker Hughes Oil Rig Count on February 9.
Vinod Nair, Head of Research at Geojit Financial Services, said: "A conservative interim budget had no slowdown effect on the market, which continued to grow on the pre-election rally."
He added: "The drastic fall in the fiscal deficit target is leading to a reduction in bond yields, which will lead to lowering of corporate borrowing costs, increasing incentives to step up investment. Furthermore, the FOMC tempers expectations that the central bank will soon slash interest rates and that inflation in the US is continuing to cool."
Technical outlook:
NIFTY: Rupak De, Senior Technical Analyst at the LKP Securities, said Nifty surpassed the 22,000 mark during the first half of the Friday session but subsequently formed a double top on the hourly chart.
"Confirmation of a bullish trend resumption would only occur with a decisive breakout above the double top, which is currently identified around 22,125. Conversely, a break below the support level at 21,500 could indicate a bearish momentum," he said, adding that in the scenario of a breakout above 22,150, Nifty may experience upward momentum, potentially reaching levels such as 22,500 and beyond.
Bank Nifty: Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, Bank Nifty bears regained control as the index failed to surpass the crucial level of 46,500 on a closing basis. He added the immediate support for the index is situated at 47,700, and a breach below this level is anticipated to intensify selling pressure, potentially pushing the index towards the 45,000 mark.
“Given the heightened volatility in the near term, traders are advised to approach the market with caution and implement strict risk management measures to navigate potential fluctuations," Shah said.
Also Read: IndiGo Q3 results: Profit more than doubles to Rs 2,998 crore