Unveiling the Holiday Week: Exciting Global Trends and Strategic FIIs’ Moves Boost Stock Market Sentiment
Last week, Indian equity markets experienced a significant downturn, with the BSE benchmark dropping 4,091.53 points (4.98%) and the Nifty losing 1,180.8 points (4.76%). In the coming holiday-shortened week, marked by the Christmas closure on December 25, investors are advised to stay cautious amidst a volatile and subdued market environment.
Market participants will primarily focus on global trends and foreign investor activities, as no significant domestic events are anticipated to provide direction. Key global indicators such as US bond yields, the dollar index, initial jobless claims, and new home sales data are expected to shape market sentiment.
The ongoing sell-off by Foreign Institutional Investors (FIIs) continues to exert pressure on the market, though analysts maintain a cautiously optimistic outlook. Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, highlighted the impact of this shift in FII strategy from buying to selling. Similarly, V K Vijayakumar of Geojit Financial Services emphasized how this sudden change has affected market dynamics.
In addition to global factors, investors will closely monitor the rupee-dollar exchange rate and Brent crude oil prices to gauge market trajectories. The upcoming expiry of December’s derivative contracts could further heighten volatility during the week.
Ajit Mishra, SVP, Research, at Religare Broking Ltd, noted that the holiday-shortened period will see a strong emphasis on FII flow trends and global market performance. Meanwhile, Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, observed that trading activity is likely to remain low due to the festive season and market closures globally.
In this environment, investors are encouraged to maintain vigilance and stay informed on global developments and FII activities to navigate potential market fluctuations effectively.
Original Source: https://www.news18.com/business/markets/share-market-forecast-tomorrow-nse-bse-sensex-nifty-9164472.html
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Publish Date: 2024-12-22 22:41:00
