As the Indian markets wrapped up the week with a marginal dip, eyes are now fixed on significant events that could influence Dalal Street in the upcoming week. Factors such as the Fed interest rate decision, the Interim Budget 2024-25, and a plethora of economic data are poised to keep the markets dynamic. Here’s a comprehensive look at what to expect in the week ahead.
Interim Budget and Market Sentiment
The coming week is set to witness heightened market activity as the Interim Budget for 2024-25 is presented in Lok Sabha on February 1. Finance Minister Nirmala Sitharaman’s announcements during Parliament’s Budget session, starting from January 31, will likely trigger sector-specific moves, impacting various segments of the market.
Quarterly Results: Market Movers
A slew of major names is gearing up to release their quarterly results, offering insights into the financial performance of key players. Companies such as State Bank of India, Tata Motors, ITC, Adani Green Energy, Bajaj Finance, Bharat Petroleum Corporation, and others will disclose their Q3 numbers. These announcements are expected to shape market sentiment based on corporate performances.
Economic Data Releases
The beginning of the new month brings a barrage of economic data releases. On January 31, investors will keenly await the Government Budget Value and infrastructure output data. Additionally, market participants will scrutinize the HSBC Manufacturing PMI on February 1 and the release of Foreign Exchange Reserves numbers on February 2.
Global Perspectives: US Market Data
Traders and investors will keep a close eye on key data releases from the US. The Dallas Fed Manufacturing Index on January 29, JOLTs Job Openings, Dallas Fed Services Index on January 30, and Chicago PMI on January 31 are significant indicators. The decision on Fed Interest Rates, S&P Global Manufacturing PMI, Unemployment Rate, Government Payrolls, and Manufacturing Payrolls on February 1 and 2 will have a substantial impact on global market sentiments.
Technical Outlook and Market Trends
In terms of technical analysis, market experts suggest a cautious approach. Nifty’s volatility may continue, with a trend likely to remain sideways within the range of 21300 and 21500. A breakthrough above 21500 could signal an upward momentum, while sustained support below this level may exert downward pressure.
Bank Nifty: A Critical Line of Defense
For Bank Nifty, the crucial support level of 44500 has been identified as a critical line of defense. A sustained level above this support could lead to a potential pullback rally, targeting resistance levels of 45500/46000. Conversely, a breach below this support may result in further downside pressure, with levels around 44000-43500 becoming potential targets.
As Dalal Street gears up for a week filled with economic data, budget announcements, and global market trends, market participants remain watchful for potential shifts in sentiment and market dynamics.
