Fed meeting among top 5 factors that could influence Sensex, Nifty this week

The Nifty and Sensex managed to maintain positive momentum for the fourth consecutive week, registering a weekly gain of 0.5% amid consolidation.

Vinod Nair of Geojit said, “Currently, the market is expecting a revival in consumer spending due to the festive season and year-end holidays, adding to the sentiment. Further, expectations of an increase in US spending are encouraging the IT sector.” .

However, traders are cautious ahead of this week’s US Federal Reserve policy meeting and the release of domestic macroeconomic data.

Here are all the key factors you need to track:

1) Fed meeting results

Global markets will be eyeing the outcome of the US Fed meeting on December 18, where a 25 basis point rate cut is already a factor. Fed comments on future rates

Policy is of considerable importance.

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2) Macro data

Besides the US Fed, the Bank of England and the Bank of Japan will also announce their monetary policy during the week. While the BoE is expected to keep interest rates on hold on Thursday, Japan is also expected to leave hiking rates on Thursday.

Market participants will be closely watching the HSBC Composite PMI, HSBC Manufacturing PMI, and HSBC Services PMI.

3) FII Action

FIIs through exchanges till 13th December Rs. 14,435 crore of equity buying, it is believed that FII selling has eased, at least in the short to medium term, which will further boost sentiment.

“Although FIIs have become buyers in December, they are also heavy sellers on some days. This suggests that at higher levels, they may again become sellers as Indian valuations continue to remain relatively high relative to other markets. A rising dollar. Another A concern that could prompt FIIs to sell at higher levels,” Dr. V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services said.

4) Global markets

Wall Street was little changed for the week in a sluggish session on Friday, with the S&P 500 and Dow posting weekly declines, while the Nasdaq posted its fourth straight week of gains.

5) Technicals

From a technical perspective, analysts say a decisive move above 24,800 on the Nifty could lead to further recovery towards the 25,200-25,500 zone. On the downside, 24,300–24,400 zone is expected to provide strong support on closing basis.

Ajit Mishra of Religare Broking said, “We maintain a “buy on dips” strategy with a focus on selective stock picking with preference to IT and banking stocks, while other sectors contribute selectively.