Geojit’s Vinod Nair said, “Sentiment is further elevated as the market now expects consumer spending to recover due to the Christmas season and year-end holidays. Additionally, expectations for higher US spending will drive the IT sector. “I am doing so,” he said. .
But traders are cautious ahead of this week’s Federal Reserve policy meeting and release of domestic macroeconomic data.
The key elements you need to track are:
1) Results of the FRB meeting
Global markets are focused on the outcome of the US Federal Reserve’s meeting on December 18th, with a 25 basis point rate cut already priced in.
Policy becomes very important. 8,000-crore boom, small caps hit new highs. Did you sell too soon?
2) Macro data
In addition to the US Federal Reserve, the Bank of England and the Bank of Japan are also scheduled to announce their monetary policies this week. The Bank of England is expected to keep interest rates unchanged on Thursday, but many believe Japan will also hold off on raising interest rates on Thursday.
Market participants will closely monitor the HSBC Composite PMI, HSBC Manufacturing PMI, and HSBC Services PMI.
3) FII Action
FIIs had purchased shares through the exchanges for Rs 14,435 million till December 13, and FII sales are believed to be subdued, at least in the short to medium term, further adding to the momentum. You will probably have to apply .
“FIIs turned buyers in December but also became heavy sellers on certain days. This is another concern that could prompt FIIs to sell at higher levels,” said Dr VK Vijahakumar, chief investment strategist at Geojit Financial Services. said.
4) World market
Wall Street ended the week little changed in subdued trading on Friday, with the S&P 500 and Dow posting weekly losses, but the Nasdaq securing its fourth straight weekly gain.
5) Technical
From a technical perspective, analysts say that any decisive move by Nifty above 24,800 could trigger further recovery towards the 25,200-25,500 zone. On the downside, the 24,300-24,400 zone is expected to provide strong support on a closing price basis.
Ajit Mishra of Religare Broking said, “We maintain a ‘buy the buy’ strategy that focuses on selective stock picking with a preference for IT and banking stocks, while other sectors remain selective. I’m making a contribution.”
