In addition to global market indices, next week’s domestic stock markets will be influenced by economic data and monthly auto sales figures, analysts say. This week, Indian markets posted strong gains, with BSE Sensex and Nifty each increasing by 2%, supported by strong global sentiment and a steady flow of FII funds.
The National Statistical Office (NSO) will release infrastructure production data for July and GDP for the April-June quarter on Monday. PMI data for the manufacturing and service sectors are also expected.
“Next week, attendees will take a close look at auto sales numbers and GDP data for clues as to how the economy is progressing. In addition, AGR case developments, monsoon progress and COVID-19 related updates would also be on their radar, ”said Ajit Mishra, VP-Research, Religare Broking Ltd.
Many analysts have a positive bias for the week. “Rollover data and FII positions indicate an uptrend and therefore traders are advised to trade with a positive bias and look for stock / sector specific buying opportunities from a short term perspective. If the index crosses the 11,500 mark, the data should be re-evaluated and trade accordingly, ”said Ruchit Jain, senior analyst for technical and derivatives at Angel Broking.
Given the strong evolution of the stock markets, the possibility of a profit reservation cannot be ruled out as the markets will reopen after the weekend, says Joseph Thomas, head of research – Emkay Wealth Management. “That said, markets should remain well supported in the near term thanks to abundant liquidity and a gradual improvement in trade indicators.”
Ajit Mishra of Religare Broking said the banking index has regained strength after months of underperformance and “we don’t see that going away anytime soon.”
“It may take a break after the sharp rise, but the bias would remain positive and this in turn would help the benchmark to hold at higher levels and even an inch higher,” he added. .
Nirali Shah, Senior Research Analyst at Samco Securities, said: “Currently, the markets appear to be in a position where it will be highly unlikely that a major move will occur at the index level, but the specific stock and market rotations are sector will be at one Traders are advised to ride the rally and investors to stay in the equity markets and only deploy excess liquidity when the market corrects sharply. “