Dalal Street week ahead: Key factors to watch

The upcoming week on Dalal Street promises to be eventful with several significant factors that could influence market movements. On Monday, markets will react to the assembly election results in Maharashtra and Jharkhand announced last Saturday.

Market Overview

Last week, the market saw a robust rebound, recovering all its losses with a nearly 2 percent gain. This surge was largely driven by short-covering ahead of the Maharashtra assembly election results, where the BJP-led Mahayuti alliance achieved a landslide victory, easing Adani-related fears.

For the week starting November 25, experts predict continued positive momentum, although some volatility is expected due to the monthly F&O expiry. Attention will be on India's GDP numbers, multiple data points from the US, and ongoing developments in the Russia-Ukraine conflict.

Key Market Indicators

The BSE Sensex rose by 1.98 percent to close at 79,117, while the Nifty 50 gained 1.6 percent to reach 23,907. The Nifty Midcap 100 index increased by 1.8 percent, and the Smallcap 100 index saw a 0.9 percent rise.

Factors to Watch

Assembly Election Results: Markets will first respond to the results from Maharashtra and Jharkhand elections.

US Economic Data and FOMC Minutes: Investors will be keen on November 27, when several US economic indicators and the FOMC's November meeting minutes will be released. Key focus areas include the potential for a third interest rate cut in December.

Global Economic Data: Important US data such as second estimates for Q3 GDP, consumer spending, and PCE prices will be announced, along with Japan's economic data.

Russia-Ukraine Conflict: Developments in the Russia-Ukraine war remain critical, especially with President Putin’s recent statements about the conflict potentially going global.

India’s GDP: Quarterly GDP growth numbers for July-September 2024 will be released on November 29, with expectations slightly lower than the previous quarter's 6.7 percent growth.

FII and DII Activity: Market participants will monitor the activity of FIIs and DIIs, as FII selling has been significantly offset by DII buying.

US Treasury Yields and Dollar Index: The US 10-year treasury yields and the US Dollar Index will also be closely watched as indicators of market sentiment.

IPO Activity: The primary market will see activity with several SME IPOs launching, while the mainboard segment will witness the closure of Enviro Infra Engineers' IPO.

Technical Indicators: The Nifty 50 has climbed above the 23,800 mark and could approach 24,000, with 23,550 and 23,260 being key support levels.

F&O Expiry: The upcoming expiry of monthly derivative contracts could introduce some volatility as positions are rolled over.

Corporate Actions

Key corporate actions will also take place next week, impacting market sentiment and individual stocks.

Disclaimer: The views and investment tips expressed are those of the experts and not of this website or its management. Please consult certified experts before making any investment decisions.