The Indian stock market is poised to maintain its bullish trend on Tuesday, with indicators such as the Sensex and Nifty expected to continue rising. This anticipated growth is primarily driven by the strong Q3 earnings report from the BFSI segment. The market sentiment is greatly influenced by the impending release of HDFC Bank’s Q3FY24 results later today. Analysts predict that this will have a significant impact on the market, with the Nifty projected to reach a range of 22,150 to 22,300 before potentially entering a consolidation phase. Despite this, the overall sentiment remains optimistic.
New Record Highs for Sensex and Nifty
In the previous trading session, both the Sensex and Nifty achieved new lifetime highs, with the Nifty surpassing the 22,000 mark. However, Asian markets showed a mixed trend, as Japan’s Nikkei 225 experienced gains while Australian and Hong Kong shares declined. The decision by China’s central bank to maintain its medium-term policy rate resulted in diminished investor enthusiasm as expectations for a rate cut were not met. European shares also saw a decline, and the US market was closed in observance of Martin Luther King Day.
Global Market Focus
This week, global market focus will center around important events such as comments from Christopher Waller, an official from the US Federal Reserve, China’s Q4 economic growth data, inflation figures from the UK, and US retail sales. The Indian Rupee continues to show strength, trading below 83.00, with foreign exchange reserves on the rise and positive growth prospects for the years 2024-2025. However, the Rupee’s gains are being limited by the dollar index and increasing crude oil prices.
Investors’ Strategies and Analyst Recommendations
Investors are advised to adopt a “buy on dips” approach and focus on stock selection. Technical analysts have provided specific levels of support and resistance for the Nifty and Bank Nifty, along with their stock recommendations for the day. It is worth noting that the market’s upward trajectory is driven by strong earnings in the December quarter and the possibility of interest rate cuts by the US Federal Reserve. Key players such as HDFC Bank, Reliance Industries, and Infosys are contributing to the overall bullish performance of the market.
