The Dalal Street BOJ judgment and the RBI MPC minutes, among other things, will occupy traders this next week

 The Dalal Street BOJ judgment and the RBI MPC minutes, among other things, will occupy traders this next week

The Dalal Street BOJ judgment and the RBI MPC minutes, among other things, will occupy traders this next week

In the future, it will be crucial to keep an eye on RBI MPC meeting minutes, Bank of Japan policy decisions, and primary market activity. Everyone is watching to see whether the market can reach new highs and rise for the ninth straight week.

Experts predict that although the market may climb further, consolidation is not completely ruled out.

After seven weeks of bullish trading in Indian markets, all eyes are now on whether the bulls can sustain their gains for an additional week. Positive domestic and international indications, including as the dovish Fed position, FII purchasing, and improved macro data, suggest that the rise may continue, analysts say, albeit some retracement cannot be ruled out.

Over the course of the previous week, the Nifty 50 increased by 2.32 percent and concluded at 21,456 after reaching a new high of 21,492.30, while the BSE Sensex increased by 2.37 percent and closed at 71,483 after reaching a record high of 71,605.

Additionally, there was activity in the wider markets. Nifty Midcap 100 increased by 2.67 percent and Nifty Smallcap 100 increased by 3.35 percent over the previous week. After the Federal Reserve hinted at three rate cuts next year, all sectoral indexes finished the day higher: the Nifty IT index was up 7%, the Nifty PSU Bank and Metal indices were up 5%, and the Nifty Realty index was up over 4%.

In the future, it will be crucial to keep an eye on the US Q3-2023 GDP figures, Bank of Japan policy decisions, minutes from RBI MPC meetings, and primary market activity. Look at the important elements:

activities of the Bank of Japan's monetary policy

Although US Federal Reserve policy decisions dominated the last week, observers predict that attention will now turn to the Bank of Japan's policy decision on December 19.

Santosh Meena, head of research at Swastika Investmart, said, "This becomes particularly important as the Japanese yen continues to strengthen, and any tightening by the Bank of Japan risks eliminating the yen carry trade." Could."

Nonetheless, many predict that Japan's central bank may rank among the most accommodating in the world by year's end. It is generally anticipated that the Bank of Japan would continue its exceptionally loose monetary policy in light of the poor consumption and the unclear wage outlook for the next year.

See also: November saw a substantial fall in wholesale inflation in Japan as a result of lessened cost pressures.

minutes for rbi mpc

The minutes of the Reserve Bank of India's most recent policy meeting will be made public on December 22. The RBI maintained the repo rate, which allows banks to borrow short-term cash from the central bank, at 6.5 percent on December 8, as anticipated, given that inflation is still higher than the central bank's medium-term objective of 4 percent.

RBI Governor Shaktikanta Das announced the MPC's decision and said that the panel responsible for establishing interest rates is closely monitoring inflation and prepared to move on the front of rates while taking the facts into consideration.

main market activity

A lot of firms went to D-Street last week, which created a stir on IPO Street. The public offerings of DOMS Industries and India Shelter Finance in the mainboard sector have concluded, while the closing of Inox India's offer is set for December 18. In accordance with T+3 listing standards, where T is shutting, all of these businesses will be listed on the stock market. Day of publication.

The IPOs of Happy Forgings, RBZ Jewellers, and Mufti Menswear will open for subscription on the same day as Suraj Estate Developers, Motisons Jewellers, and Muthoot Microfins. On December 19, these IPOs will open for subscription. The IPO for Azad Engineering will begin on December 20, while the IPO for Innova Captab will begin on December 21.

Investors should keep a watch on Sahara Maritime, Shanti Spintex, Electro Force, and Trident Techlabs in the SME sector.

FII influx

On D-Street, the general impression is that foreign investors are returning with a bang. Foreign institutional investors, or FIIs, have purchased stocks worth a total of Rs 29,700 crore in December after selling stocks valued at almost Rs 75,000 crore during the previous three months.

FPIs becoming purchasers is a significant event in December, particularly in light of the state election outcomes, according to Dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Large quantities of shares in the IT and banking industries have been purchased by FPIs. Going ahead, FPI purchasing is probably going to continue. For foreign investors, India is among the best places to invest. The international investment world now largely agrees that India possesses the greatest "Among emerging economies positioned for sustained growth for many years to come, there are good possibilities," he said.

pricing of crude oil

According to the International Energy Agency, 1.1 million barrels of oil will be used worldwide in 2024.

barrels per day, a little increase above its earlier prediction of 930,000 barrels per day. Sharekhan predicts that crude oil prices will soon reach $75.

M. $70/$67 is the support rate. Prices will be constantly watched since India is still a net importer of oil.

US GDP growth in Q3

The world's biggest economy's final GDP figures for the September quarter of this year will be closely watched by investors worldwide. The US economy expanded at a pace of 5.2 percent in the second estimate released in November, which was higher than the 4.9 percent preliminary estimate released in October. This is much better than the 2.1 percent growth rate seen in the April-June quarter and better than the around 5% growth rate that most analysts had predicted.

worldwide economic statistics

In addition, information on housing starts, personal income and expenditure, durable goods orders, and new home sales will be tracked in the US for November. Participants will also concentrate on the GDP figures for the United Kingdom's third quarter of 2023, November inflation data, and the rate of inflation across Europe.

technological methodology

With a breakthrough from a flag formation, Nifty is still moving in a positive direction. According to Meena of Investmart, the short-term objective is 21,700, followed by a rise to 22,000, but there could be some consolidation in between.

"In the event of a decline, 21,200 provides immediate support, and 21,000 is a critical level of support," he said.

A good closing over the 48,000 barrier in the case of the Bank Nifty allows for more gains towards the 48,500/48,800 levels.

"Immediate support is at 47,500, in case of a bearish stance the important support zone is at 47,000-46,800," Meena said.

F&O signal

According to options data, the Nifty 50 is anticipated to advance in the direction of 22,000–22,200, with support around 21,300–21,000 in the next weeks, although the put-call ratio will remain at 1.47, which is the highest level in the previous 12 sessions. Given that the index has increased by more than 6% this month, analysts said that some kind of stabilization and pullback cannot be ruled out before moving back into action mode, above 1.37 in the previous session.

In the case of puts, maximum open interest was at 21,300 strike, followed by 21,200 strike and 21,000 strikes, 21,300 strikes with writing, then 21,400 strikes and 21,200 strikes. On the call side, maximum open interest was visible at 22,000 strike, followed by 21,500 strike, with meaningful writes at 22,200 strike, then 22,000 strike.