Synopsis
The upcoming week's market outlook will be shaped by vital domestic and international GDP statistics, foreign institutional investor activity, and the impending expiry of monthly futures and options contracts. These factors are likely to influence market sentiment significantly.Key Takeaways
- India's GDP estimates to be released on February 28.
- Nifty and BankNifty F&O expiry on February 27.
- Global data includes US home sales and GDP growth.
- FIIs continue to sell, while DIIs invest.
- Monitor market indicators like RSI and MACD.
New Delhi, Feb 23 (NationPress) The market outlook for the upcoming week will be influenced by both domestic and international GDP data, FIIs inflows, and the expiry of monthly F&O contracts.
On the domestic side, the second advance estimates of India's annual GDP for FY 2024-25 along with quarterly GDP estimates for Q3 (October-December) will be unveiled on February 28.
The GDP projections will significantly affect short-term market sentiment; positive revisions may boost optimism, while negative adjustments could heighten worries about growth challenges.
Moreover, the Nifty and BankNifty monthly F&O (Futures and Options) contracts are due to expire on February 27.
On the international front, key data including US new home sales, the US GDP growth rate (QoQ) second estimates for Q4, and initial jobless claims will be published next week.
The previous week showed a mixed outcome for the Indian stock market. The Sensex ended at 75,311, down 628 points or 0.83 percent, while the Nifty closed at 22,795, down 133 points or 0.58 percent.
In contrast, the broader market experienced some gains, with midcap and smallcap indices climbing by 1.70 percent and 1.50 percent respectively.
Last week, substantial buying was noted in the metal index, while the performance of the Telecom Index was notably poor. The decline in market sentiment is primarily linked to US President Donald Trump's announcement regarding reciprocal tariffs on major trading partners.
Foreign investors continued their selling spree in the stock market last week as well. Foreign institutional investors (FIIs) sold Rs 7,793 crore in the cash segment, while domestic institutional investors (DIIs) invested Rs 16,582 crore in equities.
Puneet Singhania, Director at Master Trust Group, stated, "Nifty hit its lowest point since June 2024, marking the second consecutive week in negative territory. The index closed just below 22,800, indicating market weakness."
"Moreover, both the RSI and MACD indicators remain negative, supporting the downtrend. The recommended approach in this market context is to sell on rallies. Prices are expected to test the 22,500 and 22,300 levels in the forthcoming sessions, which reflects additional downside risks," he added.
