Major macro data to steer mkt direction

Sustaining the positive momentum on the back of mixed global cues ahead of US Fed Policy outcome next week, renewed FIIs buying, better than expected CPI and IIP data; the domestic stock market logged gains for the fourth consecutive week. The final trading session of the week was a roller-coaster ride, with both NSE Nifty and BSE Sensex experiencing sharp swings in both directions before ending nearly one per cent higher over previous session closing. Additionally, the third-quarter earnings performance of Indian companies and the country’s progress on the economic growth front will play a crucial role in shaping investor sentiment and influencing foreign inflows. The Indian rupee hit fresh record low of 84.86 during the course of the week and finally ended at 84.79 per dollar. The winter session of Parliament is scheduled to conclude on December 20. The two bills related to implementation of the simultaneous elections to Lok Sabha and State Assemblies have been circulated among members last week as per the rules of procedure. Ahead of the Christmas festivities, many central banks, including the US Fed, are lining up to announce their policies next week. There will be lots of data fireworks such as inflation, PMIs and trade deficit. Market participants should align their strategies accordingly, prioritizing risk management to navigate market volatility effectively.

F&O/ SECTOR WATCH

Tracking the cash market, the derivatives segment witnessed brisk trading in many of the new entrant stock futures. Sector-wise, the IT, Financial services, and FMCG sectors posted strong gains, while the Media, PSU Banks and Energy sectors faced pressure on a weekly basis. In the options market, the highest Call Open Interest for Nifty was seen at the 25,000 and 25,100 strikes, while the notable Put Open Interest was at the 24,500 and 24,700 strikes. For Bank Nifty, the prominent Call Open Interest was seen at the 54,000 strike, whereas notable Put Open Interest at the 53,000 strike. Implied Volatility (IV) for Nifty’s Call options settled at 12.36 per cent, while Put options conclude at 13.03 per cent. The India VIX, a key market volatility indicator, closed the week at 13.19 per cent.

(The author is a senior maket analyst and former vice- chairman, Andhra Pradesh State Planning Board)