Indian Stock Market Set for Consolidative-to-Positive Movement in Absence of Major Triggers
The Indian stock market is gearing up for a consolidative-to-positive movement this week, with investors eagerly awaiting any Union Budget-related or government policy announcements that could impact specific stocks. The market will remain closed on Monday, June 17, due to the Bakri Id holiday, but the rest of the week is expected to see active trading.
Last week, the market saw a slight uptrend, with the NSE Nifty 50 and the S&P BSE Sensex both recording gains for the second consecutive week. The benchmarks closed higher, with the Nifty settling at 23,465.60 and the Sensex at 76,992.77. Sectoral buying and positive themes kept traders engaged, with state-run firms, lenders, and oil and gas stocks showing notable gains.
However, the IT sector saw a decline last week, following a strong performance in the previous week. The US Federal Reserve’s decision to keep interest rates unchanged and scale back its rate cut forecast for the year had an impact on market sentiment. Despite this, India’s retail inflation hit a one-year low in May, contributing to a more stable market environment.
Looking ahead, market analysts expect the positive trend to continue, supported by strong macroeconomic indicators, government spending, and healthy earnings. The upcoming union budget is also expected to provide cues for market direction, with a focus on welfare and consumption-led stocks anticipated.
In the coming week, the market will be closely watching global cues, FII activity, oil prices, and corporate actions. Several new IPOs and listings are scheduled, and FII activity remains a key factor in market sentiment. Global macroeconomic data, including US and UK indicators, will also influence market movements.
Technical analysis suggests that the Nifty index is poised for further gains, with key support levels identified for potential profit-taking. Traders are advised to exercise caution and focus on key sectors and themes for trading opportunities. Overall, the market outlook remains positive, with the potential for further upside if key levels are breached.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. Investors are advised to consult with certified experts before making investment decisions.
