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Published: January 8, 2024
Updated: January 8, 2024

Knowing the Week's Market Potential: Q3 Earnings, Economic Indicators, and Global Influences

As we step into a new week, Dalal Street gears up for a dynamic series of events that could shape market trends. Let's delve into the key factors that might steer the Sensex and Nifty.

1. Earnings Season Kickoff: TCS and Infosys Take the Lead

The much-anticipated Q3FY24 earnings season commences with Tata Consultancy Services (TCS) and Infosys revealing their financial performance on January 11. Additionally, major players like HCL Technologies, HDFC Life Insurance Company, and Wipro are set to follow suit, adding to the market's anticipation.

2. Economic Pulse Check: IIP and CPI Data

Investors keep a watchful eye on India's economic health with the release of Index of Industrial Production (IIP) data for November, showcasing a promising 11.7% YoY growth in October 2023. Simultaneously, the Consumer Price Index (CPI) for December will be unveiled, giving insights into retail price inflation trends.

3. Forex Reserves and Banking Metrics Unveiling:

On January 12, attention shifts to India's foreign exchange reserves data, highlighting a notable increase to $620.44 billion by December 22. The same day will see the release of deposit growth and bank loan growth figures, offering a comprehensive view of the financial landscape.

4. Global Market Watch: US Macroeconomic Data

Beyond borders, the US market plays a pivotal role, with investors eyeing key macroeconomic indicators. Consumer inflation data on January 8 sets the stage, followed by critical events like Balance of Trade, Redbook, API Crude Oil Stock, Wholesale Inventories, EIA Crude Oil Stocks, Core Inflation, and Initial Jobless Claims throughout the week.

5. Market Outlook and Technical Insights:

Nifty's recent rise, driven by high cash market volumes on the NSE, reflects a market in flux. Technical analyses suggest a nuanced scenario, with Nifty forming a near doji pattern on daily charts and a potential range-bound movement. Meanwhile, Bank Nifty exhibits resilience, bouncing back from the 14-day moving average support.

6. Global Context and Cautious Optimism:

Global equities experienced mixed fortunes, with investors treading carefully ahead of the release of the US jobs report. The HSBC India Services PMI Business Activity rose sharply to 59 in December, underscoring increased output. In a climate of cautious optimism, strategic decision-making becomes paramount. Stay tuned as the week unfolds, revealing the unfolding narrative of market dynamics.