Indian stock market continues its record bull run as foreign inflows return, setting the stage for a strong month ahead of the Union Budget 2024. The market saw a spectacular month-opening with the Sensex and Nifty 50 hitting record highs for the sixth consecutive week. IT stocks led the rally after TCS reported positive Q1 results, signaling a recovery in the sector.
Investors are eagerly awaiting the Union Budget on July 23, 2024, as well as the next set of Q1FY25 results, domestic and global macroeconomic data, and corporate announcements. The market experts predict heightened volatility during the earnings season, advising caution on profit-booking if Nifty hits 25,000.
The market also saw strong FII activity, with foreign investors buying equities worth ₹3,844 crore last week. Domestic institutional investors also showed strong buying activity, with DIIs sustaining their buying streak. The upcoming IPOs and listings, along with the corporate dividends declaration, add to the market’s buzz this week.
Global cues, including US and UK market performance, US Federal Reserve Chairman’s speech, and China’s economic stimulus announcement, will influence market movements. Oil prices settled slightly lower, but hopes for a US Fed rate cut in September remain high.
Technical analysts suggest a cautious approach, focusing on IT, energy, FMCG, and pharma for long trades. Nifty 50 is expected to aim for the 25,000 mark, with immediate support at 24,300 and key support at 24,000. Bank Nifty also shows a bullish trend, with support at 52,200-52,000 levels.
Overall, the Indian stock market continues its bullish momentum, driven by positive economic growth prospects, record-high inflows, and strong investor sentiment. The upcoming events, including the Union Budget and Q1FY25 results, are expected to further fuel market movements in the coming week.
