Market Outlook: US Fed policy, FII data and global cues key triggers for next week

Mumbai (The Uttam Hindu): A blend of global and domestic factors will influence the stock market outlook for next week. On the global front, particularly the performance of US markets and the Fed's monetary policy decisions will play a significant role; and domestic economic indicators like GDP growth, FIIs and inflation will shape market sentiment.

Last week, Indian stock markets ended on a positive note, with the Sensex and Nifty gaining nearly 3 per cent from their recent lows. A broad-based buying spree lifted more than 40 Nifty stocks. This strong performance was driven by a combination of factors, improving global and domestic sentiments.

On Friday (the last trading session), the stock market saw a smart turnaround after initially experiencing a big fall. Telecom, tech, consumer durables, and IT stocks saw a strong rally.

On a weekly basis, the Nifty rose 0.37 per cent to 24,768 and the Sensex rose 0.52 per cent to 82,133. This was the fourth consecutive week when the Indian stock market closed with gains.

Between December 9 to December 13, Foreign Institutional Investors (FIIs) net sold Rs 226 crore in the cash market, whereas Domestic Institutional Investors (DIIs) supported the market with a net investment of Rs 2,880 crore.

Puneet Singhania, Director at Master Trust Group said, "Nifty 50 has claimed a bullish stance after breaking the horizontal resistance of 24,700 with closing above it for the first time. The strong support is at 24,100 and 24,300, making it a key level for traders. Buying is favourable at around 24,300-24,400 with a stop loss at 24,100."

"On the upside, the index may aim to reclaim the psychological 25,000 level. However, if it breaches 24,100, further downside toward 23,900 is possible. The current trend indicates optimism, with opportunities for buying on dips and clear risk levels for managing trades effectively," he added.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "Banknifty continues to show strong momentum, with 53,800-54,000 as the immediate resistance zone. A breakout above 54,000 could lead to the next resistance area at 54,350-54,500. On the downside, 53,300 serves as immediate support, followed by 52,600 as the next support level."