Consolidation likely to continue; inflation numbers, FOMC meet outcome on radar: Analysts
Market participants will be tracking India's inflation data and the US Federal Reserve's outlook on prices and the course of its rate hikes. ECB and BoE developments will also be closely watched during the week, say analysts
Indian equity market snapped the two-week gaining momentum and lost 1 percent in a volatile week ended December 9. The BSE Sensex fell 686.83 points or 1.09 percent to close at 62,181.67 and the Nifty50 shed 112.75 points or 1.06 percent to end at 18,496.6 levels during the week. Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities | The street is now fearing an 80% chance of a 50 bps rate hike by the Fed in its Dec 14th FOMC meeting. Till then we suspect the sentiment to remain fragile and a range-bound session expected for Monday. Technically, Nifty’s make-or-break support is seen at 18410 mark, while the immediate hurdle for the index is now seen at 18665 mark.
Ajit Mishra, VP - Technical Research, Religare Broking | Indications are in the favour of prevailing consolidation to continue and sustainability above 18,300 in Nifty is critical to maintaining the positive tone. Among sectors, banking and FMCG look promising while others may contribute selectively. Traders should plan their positions accordingly.
Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities | The recent trend indicates that markets may continue to exhibit intra-day volatility as investors keenly await the outcome of the US Fed's decision on interest rate next week. More than the rate hike, investors would be more interested in knowing about the forward-looking statement on inflation and rate decision going ahead. Technically, the lower top formation on intraday charts and bearish candle on weekly charts is indicating further weakness from the current levels. For short-term traders, the 20-day SMA (Simple Moving Average) or 18,450 would act as a sacrosanct support zone, above which, we could expect a one pullback rally till 18,700. On the flip side, below 20 day SMA or 18,450, further sell off is possible till 18,300-18,200. Apurva Sheth, Head of Market Perspectives, Samco Securities | The upcoming week has a host of important events lined up. The three large economies—the US, the UK, and India—will each disclose their inflation rate. As a result, the world's markets will be closely monitoring these numbers and hoping for an improvement. Additionally, the US and UK will be making their interest rate announcements, which will keep the global markets active. Siddhartha Khemka, Head Retail Research, Motilal Oswal Financial Services | We expect the consolidative mode to continue till key central banks like the US Fed, ECB and BoE outcome. We expect weakness in tech stocks to continue on account of a weak growth outlook. FMCG stocks are expected to do well on the back of the fall in commodity prices and improving demand.