MARKET SUMMARY
Indian markets are expected to open on a positive note on Monday, with Nifty and Sensex likely to start higher, continuing the momentum from last week’s gains. The benchmark indices are aiming for a breakout above 26,100, driven by strong technical indicators and favorable global trends.
KEY DRIVERS
– Global Cues: US markets ended the week with mixed results following a government shutdown. However, easing inflation concerns and a softer Dollar Index, which is below 99.45, are enhancing risk appetite.
– Domestic Sentiment: Last week, Nifty closed at 25,910 while Bank Nifty was near 58,517, both maintaining crucial support levels. Domestic Institutional Investors (DIIs) are providing stability despite selling pressure from Foreign Institutional Investors (FIIs).
– Policy Watch: Progress on the India-US trade deal and favorable outcomes from the Bihar elections are contributing to market optimism.
– Technical Strength: Nifty’s weekly chart indicates a bullish trend, with higher highs and higher lows, suggesting sustained momentum.
SECTORS TO WATCH
– Financials: Public sector banks and capital markets are spearheading the rally, showing strong support and potential for breakout.
– Pharma & FMCG: These sectors are demonstrating resilience, while IT and media sectors face challenges due to global issues and earnings disappointments.
– Metals: Stocks like Hindustan Copper are performing well despite global pressures.
EVENTS
– FOMC Meeting Minutes: Investors will pay close attention to the Federal Reserve’s stance, particularly regarding possible rate cuts in December.
– US Jobs Data: The release of the September jobs report is anticipated and could influence global markets and investor sentiment.
RISKS
– FII Flows: FIIs have been net sellers, withdrawing ₹12,000 crore, which could lead to increased volatility.
– Global Uncertainty: Ongoing inflation concerns and geopolitical tensions remain significant risks for the week.
CLOSING NOTE
Markets are set for a positive opening, but traders should remain vigilant to global cues and FII activity for any unexpected changes.