Will Nifty touch 24,000 this week? Top 5 factors at play
Nifty remains locked within a narrow range of 23,200-23,500. If it breaks out above 23,600, the index can rally as much as 24,000 depending on news flow around the upcoming Union Budget and 100-day plans by various ministries.
However, recent movements in Nifty suggest a time-based correction. «A near-term consolidation seems probable as domestic investors await cues from the upcoming union budget. There is a growing opinion that the government could place emphasis on welfare, giving a fillip to consumption-led stocks,» said Vinod Nair, Head of Research, Geojit Financial Services.
This week will be a holiday-shortened one as the market will be shut for trading on Monday due to Eid celebrations.
Here are the key factors that are likely to seal the fate of Nifty bulls this week:
1) Global markets
The Dow Jones ended the week 0.65% lower, the FTSE ended with a loss of over 1%, the Hang Seng 2.3%, and Japan's Nikkei closed with a weekly gain of 0.44%.
The UK economy showed no growth as the April GDP came flat as compared to the rise of 0.4% in March.
US May CPI inflation came flat as compared to a 0.3% rise in April, indicating a decline in the prices of essential commodities. The Federal Reserve kept its key interest rate unchanged in the FOMC meeting and scaled back its forecast from three rate cuts to just one this year after an inflation pickup in early 2024.
2) Macro cues
The market will also be tracking the release of industrial production data from India, China, and Eurozone inflation. The Bank of
