News

Published: February 26, 2024
Updated: February 26, 2024

These factors will govern the Stock Markets in the last week of February; check out

Market Outlook and Expectations

As we brace for the week ahead, market analysts anticipate heightened volatility driven by the February derivatives contracts' expiry. Despite this, the Nifty 50 is poised for a steady ascent towards the 22,500-22,800 range, supported by optimistic indicators.

Previous Week Recap

In the preceding week, global indices surged, fueled by a tech rally sparked by Nvidia's strong performance. However, mixed global cues and profit-taking activities tempered momentum in Indian markets, leading to a modest gain of nearly one percent.

Domestic Market Performance

The Nifty and Sensex oscillated within a narrow range, ultimately settling at 22,212.70 and 73,142.80, respectively. Notably, sectors such as realty, FMCG, and metal outperformed, while broader indices closed flat.

Sectoral Analysis and Earnings Review

Despite overall market gains, small-caps lagged behind, indicating a nuanced market sentiment. Notably, sectors like capital goods and industrial showed strength, driven by advancements in manufacturing and services.

Upcoming Market Triggers

The week ahead promises several key events, including the release of India's Q3 GDP data, infrastructure output figures, and fiscal deficit data. Additionally, auto sales data for February will shape market sentiment.

Primary Market Activity

Investors will closely monitor the primary market as several IPOs and listings are scheduled across various segments. This activity adds another layer of complexity to market dynamics.

Foreign Investment Landscape

Foreign institutional investors (FIIs) remained cautious, with sporadic selling observed in select sectors. However, domestic institutional investors (DIIs) displayed robust buying behaviour, contributing to market resilience.

Global Economic Indicators

The global economic landscape remains influential, with upcoming releases of US Q4 GDP numbers and initial jobless claims. Investors will scrutinize these figures for potential market implications.

Oil Price Dynamics

Oil prices experienced volatility, influenced by indications of delayed US interest rate cuts. Despite this, factors such as healthy fuel demand and supply concerns could drive prices higher in the near term.

Corporate Actions

Several companies are set to trade ex-dividend, ex-bonus, or ex-split, adding to market movements. Bajaj Auto's announcement of a share buyback further contributes to corporate action.

Technical Analysis and Market Strategy

Technical indicators suggest a positive bias, with Nifty poised for an upward trajectory towards 22,500. Investors are advised to maintain a "buy on dips" approach, focusing on stock selection amidst evolving market conditions. With a keen eye on macroeconomic data, global cues, and technical indicators, investors can position themselves strategically to capitalize on market movements and optimize returns.