MUMBAI: The market outlook for next week will be guided by the major domestic and global economic data such as India's Current Account Q3, India Bank Loan Growth, HSBC Manufacturing PMI of India (Dec), India's Infrastructure Output, US Fed Balance Sheet, US Initial Jobless Claims, and US ISM Manufacturing PMI.
Last week, the market's benchmark indices closed with gains. During this period, the Sensex closed at 78, 699 with a gain of 657 points or 0.84 per cent, and the Nifty closed at 23, 813 with a gain of 225 points or 0.96 per cent.
Pharma and healthcare were the top gainers last week. The benchmark indices rose due to the rise in banking stocks.
In the trading session from December 23 to December 27 (excluding the Christmas holiday on 25 December), foreign institutional investors (FIIs) have sold Rs 6, 322 crore in the stock market. At the same time, domestic institutional investors (DIIs) have invested Rs 10, 927 crore in the cash market.
Santosh Meena, Head of Research, Swastika Investmart said, "On the currency front, the rupee faced significant weakness last week, drawing attention to upcoming developments. The current account deficit numbers, scheduled for release on December 31, could influence rupee movements."
"Monthly auto sales data will also be closely watched. The auto sector has been under a cloud of pessimism recently, and any positive surprise could bolster market sentiment, " He added.
Puneet Singhania, Director at Master Trust Group said, "Nifty has been consistently taking support near the 23, 650 level on the daily chart and ended the week with an inside candle on the weekly chart, following heavy selling in the previous week. The support is further reinforced by an ascending trendline on the weekly chart."
Singhania further said, "A breach below this support could intensify selling, potentially pushing the index towards the 23, 200 level. On the upside, sustaining above 23, 950 could trigger fresh buying towards 24, 200."