Global factors, macroeconomic data to drive markets in holiday-shortened week ahead: Analysts

Analysts said the stock market will be driven by global trends and the release of macroeconomic data and foreign money movement in a week that gets shorter during the holiday. They added that the movement of the rupee and Brent crude oil will remain in focus this week.

The bulls need some support from global markets to continue the momentum on Friday. Santosh Mina, Head of Research at Swastika Investmart Ltd, said the geopolitical situation, macro figures from the US, the direction of the US dollar index and bond yields will be key factors to watch on a global level.

After rebounding after seven consecutive sessions of declines, the 30-share BSE index jumped 1016.96 points, or 1.80 percent, to settle at 57,426.92 on Friday. The broader NSE Nifty index rose 276.25 points, or 1.64 percent, to close at 17,094.35.
Institutional flows will play a decisive role in the direction of the market. “We will have a shortened week where the markets will remain closed on Wednesday due to Dussehra,” Mina said.

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Manufacturing PMI data is due on Monday, while services data will be released on Thursday.

“This week is a short holiday and also marks the beginning of a new month, and very important data such as auto sales, S&P manufacturing PMI and S&P services PMI will be in focus. Besides, the performance of global markets and the trend of industries companies will remain in focus. Fisheries and movement in currency and oil are on participants’ radar, said Ajit Mishra, Vice President of Research at Religare Broking Ltd.

Last week, Sensex lost 672 points, or 1.15 percent, while Nifty lost 233 points, or 1.34 percent. Amol Athwali, Vice President of Technical Research, Kotak Securities Ltd. said global macroeconomic factors will continue to dictate domestic market sentiment as any fresh wave of negative news could once again lead to a downward spiral.