New Delhi: Last week, Indian equity markets experienced significant volatility following the unexpected results of the 2024 Lok Sabha elections.
The National Stock Exchange (NSE) benchmark Nifty fluctuated within a range of 21,300-23,300 points, marking the widest range since May 2020.
With the formation of a new government on Sunday, market stability is anticipated in the coming week. The market outlook will be influenced by major domestic and global economic data.
Retail inflation (CPI and Index of Industrial Production) data are expected to be released on June 12. The retail inflation rate in March and April was 4.85 percent and 4.83 percent, respectively. Economists predict a May rate of 4.8 percent. The IIP rate is expected to be 3.9 percent for April, down from 4.9 percent previously.
Globally, significant events are scheduled for June 12, 2024, including the announcement of US core and consumer price inflation figures, the US Federal Reserve’s interest rate decision, and the Federal Open Market Committee’s (FOMC) economic projections. The Fed may maintain interest rates between 5.25 to 5.50 percent, with the first interest rate cut potentially occurring in September or December. Additionally, important economic data from Japan, the UK, and China are expected next week.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, commented, “Nifty staged impressive rebounds from their respective 200-day exponential moving averages (200-DMA). Nifty is nearing its all-time high of 23,338, which acts as immediate resistance. A break above this level could propel the index towards 23,500 and even 23,800. On the downside, the 23,000-22,800 zone offers immediate support, with the crucial 20-DMA around 22,600 acting as a stronger floor.”
