Macroeconomic data and monthly sales data from auto makers are expected to influence the trajectory of domestic equity markets in the coming week, according to analysts.
Global crude oil prices along with the expectations of a healthy earnings season would also influence market movement, market observers pointed out.
Macroeconomic data on eight core industries, external debt, Purchasing Managers’ Index (PMI) numbers and monthly automobile sales’ figures will be released during the trading week starting December 30.
“Monthly automobile numbers will be announced leading to some movements in their stock prices,” said Deepak Jasani, retail research head at HDFC Securities.
“Core infra data for November and the PMI Manufacturing number will impact market mood in the coming week.”
Stocks are likely to see low volume consolidation in the week ahead, said Sahil Kapoor, chief market strategist, Edelweiss Professional Investor Research.
“The uptrend remains intact and market breadth is improving,” he said.
“More and more stocks are now beginning to trade at multi-week and multi-month highs. This is a positive sign. We continue to believe that Nifty is likely to head towards 13,500 by the second quarter of financial year 2020-21,” he added.
“Global markets seem to be in comfort zone fuelled by hopes of easing trade tension which will add adequate liquidity to emerging markets like India,” said Vinod Nair, head of research at Geojit Financial Services.
“Going ahead, we believe large private banks, consumer or FMCG, core sectors like cement and capital goods would do well,” said Siddhartha Khemka, retail research head at Motilal Oswal Financial Services.
Furthermore, the movement of the rupee against the US dollar and in crude oil prices will also set the course for key indices.
“With crude hovering at more than $68 level… Expect rupee to touch 72 to a US dollar, if crude advance continues,” said Sajal Gupta, head forex and rates at Edelweiss Securities.
Last week, the rupee closed at 71.36 against the greenback.
On the technical charts, the short-term trend of the National Stock Exchange’s (NSE) Nifty50 remains positive.
“Technically, while the Nifty has corrected marginally this week, the index remains in an intermediate uptrend,” Mr Jasani said.
“Further upsides are likely once the immediate resistances of 12,287-12,294 are taken out. Crucial supports to watch for resumption of weakness are at 12,118-12,046.”