Last week – review
Going into trade in the first week of 2024, we expected to consolidate after year-end rally seen in last two weeks of December 2023. Market had volatile session in range and ended the week flat on major indices. Mid-cap 100 & Small-cap 100 stocks gained around 2% on major indices, rally continues in Mid-cap & Small-cap stocks.
Technical Insight
• Nifty range for next week could see break-out from this range of 21506 – 21834. Nifty technical indicate positive momentum to accelerate once 21834 is crossed.
• Banknifty range of this week is expected from 47575 to 48636. We remain positive on Banknifty and will review long position only if Banknifty goes below 47575.
Approach on Technical: last week was all about consolidation and we expect this week, market to take decisive direction. Indices consolidated this week after two weeks of major rally.
Nifty is strong as compared to Banknifty on daily chart, Indices likely to maintain positive momentum as Nifty @ 21506 & Banknifty @ 47575 holds on closing basis.
Fundamental Insights
1) India GDP: Advance Estimates Peg FY24 Growth At 7.3%, Nominal GDP Expansion At 8.9%
2) HDFC Bank Q3 Updates: Deposit Accretion Slows
3) India To Tighten Budget Deficit as Bond Index Inclusion Beckons
Equichain Wealth Advisors: Market View & Strategy
Global cues are muted as incoming U.S. economic data will play important role in providing fresh cues for interest rate which was key reason of rally in global market in December 2023. U.S. CPI & Core CPI inflation data will due next will provide important direction as US 10-year bond yield back above 4.00%.
IT stocks – INFY & TCS to start earnings season on 11-Jan-24, we see IT stocks may have bottomed out and we go into result season with positive view on IT stocks. HDFCBANK quarterly business failed to cheer the market but we see this number as positive as credit growth remains healthy.