Week Ahead: Inflation Data, US Fed Policy, Global Cues Among Key Market Triggers

Week Ahead: Inflation Data, US Fed Policy, Global Cues Among Key Market Triggers

Indian stock markets are likely to be influenced by a host of factors in the coming week, including the release of domestic inflation data, the US Federal Reserve’s policy meeting, and global cues.

Key Triggers:

Domestic Inflation Data: The Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data for December will be announced on January 12 and 14, respectively. Inflation is expected to have moderated slightly, but analysts will be closely monitoring the numbers for any signs of a sustained decline.
US Fed Policy Meeting: The Federal Open Market Committee (FOMC) will hold its policy meeting on January 24-25. The market is widely expecting the Fed to raise interest rates by 25 basis points, but any hawkish signals or a more aggressive rate hike could impact global risk appetite.
Global Cues: The performance of global markets, particularly the US and European indices, will also influence domestic sentiment. Investors will be tracking geopolitical tensions, economic data, and earnings reports from major companies.

NiftyOutlook:

The Nifty 50 index is currently hovering around the 18,000 mark. Technical analysts believe that the index could face resistance at 18,150 and 18,250 levels. However, a sustained break above 18,250 could lead to a rally towards the 18,500 mark.

Top Stocks to Watch:

Tata Consultancy Services (TCS): The IT giant is set to announce its December quarter earnings on January 19. Analysts expect the company to report strong growth in revenues and profits.
Reliance Industries (RIL): The conglomerate is expected to update investors on its key growth initiatives and financial performance in its December quarter earnings call on January 19.
Infosys: The IT major will announce its earnings for the December quarter on January 20. Investors will be keenly watching for growth trends and margins.

Conclusion:

The coming week will be crucial for Indian stock markets, as key domestic and global events could shape the trajectory of the market. Investors should assess the potential risks and opportunities carefully and adjust their strategies accordingly.