Sensex, Nifty set for flat open amidst F&O expiry and exit polls

KS Badri Narayanan Updated - November 28, 2023 at 08:30 AM.

Attention will be on Asian market movements alongside a focus on upcoming macroeconomic events and domestic cues impacting sectors like autos and infrastructure.

Domestic markets will open flat to the fresh week after an extended break. Gift Nifty at 19,881 indicates a flat opening as Nifty futures closed last week at 19,826.75 (November contracts) and 19,937.97 (December contracts).

Analysts expect the market to witness volatility due to the settlement of F&O contracts on Thursday and ahead of exit polls that will be out on Thursday. However, analysts expect the volatility to be contained in individual stocks and the benchmark to move in a broad range with low volumes. They hope investors will take a pause ahead of crucial development. Besides, there is a lack of triggers at both domestic and global levels to keep the market on the sidelines.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said: F&O expiry, exit polls, and macro numbers may trigger volatility this week. “The market was largely quiet this past week, with no significant changes in the headline indices. However, there was some stock-specific activity. Global cues were favorable, but investors are awaiting the results of the state elections. Additionally, liquidity is tied up in primary markets due to the recent surge of IPOs,” he said

“This week, the market may experience some direction and increased volatility as we approach the November F&O expiry. On November 30, exit polls for the state elections and India’s GDP for the third quarter will be revealed. Monthly auto sales for November will follow on December 1, with particular attention paid to Diwali sales figures. While global cues are relatively muted, market participants will closely monitor movements in crude oil prices, US bond yields, and the dollar index,” he added.

Meanwhile, Asian stocks are mixed in early deals on Tuesday.

Analysts said macroeconomic data will be in focus this week. Arvinder Singh Nanda, Vice President of Master Capital Services Ltd, said the market will focus on the global and domestic macroeconomic data. Major domestic macroeconomic events for the next week, including Auto stocks, will be in focus as auto companies will start announcing monthly sales numbers for November starting from December 1. On the macro front, India’s gross domestic product (GDP) for the third quarter will be released on November 30 2023. The infrastructure output data for October will be released on the same day.

“The S&P Global Services PMI for November will be declared on December 1 2023. The market will take further cues from US building permit data, US new home sales data, US GDP data, Crude oil Inventories, US Core PCE Price Index, US PMI data and Eurozone core CPI data.”

Published on November 28, 2023 02:59

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