Market outlook: Analysts cautiously optimistic about Indian equities this week

Market analysts remain cautiously optimistic about the stock market this week and the global crude oil prices amid geopolitical uncertainties the domestic wholesale price index inflation WPI consumer price index inflation CPI earnings of corporates are all likely to steer investor sentimentIn the last week the 30share BSE Sensex gained 052 per cent to settle at 7849917 while the Nifty advanced 077 per cent to end at 2457065We remain constructive on the market in the near term with the Nifty maintaining a positive structure as long as it holds above the 24400ndash24450 support zone On the upside 24750ndash24800 remains the immediate hurdle and a decisive breakout above this zone could trigger a move towards 25000ndash25150 A breach of 24400 however could lead to some profittaking towards 24200 Hence dips towards the support zone should be viewed as opportunities to accumulate quality stocks rather than as a trend reversal Rajesh Palviya Head of Research Axis Direct saidThe major cuesAccording to Vinod Nair Head of Research Geojit Investments investors will closely monitor upcoming US labour market and inflation data for further clarity on the US Federal Reserve policy trajectoryThe US Federal Reserves policy majorly influences foreign institutional investors FIIs The higher interest rate in US may tempt foreign institutional investors to park their funds over there rather than investing it in developing economies like India Normally FIIs infuse massive capital in the equity market through their bulk buying and the withdrawals could lead to sharp corrections in a domestic marketFIIs turned net buyers in July with inflows USD 25 billion According to Pabitro Mukherjee Deputy Vice PresidentResearch Bajaj Broking FIIs net inflows during the last week August 3 to August 7 was Rs 2911 croreLooking ahead investors will closely monitor Indias Consumer Price Index CPI and Wholesale Price Index WPI inflation data the ongoing Q1FY27 earnings season US CPI and PPI inflation the OPEC Monthly Oil Market Report and Chinas industrial production and retail sales data for further cues on inflation global growth and commodity prices Siddhartha Khemka Head of Research Wealth Management Motilal Oswal Financial Services saidInvestment in the primary market is expected to be healthy with five initial public offerings IPO opening for subscription this week Molbio Diagnostics Dhoot Transmission Milky Mist Dairy Food Shiprocket and Behari Lal Engineering with combined issue size of approximately Rs 7479 crore are likely to generate interest among investors Besides Technocraft Ventures LEAP India and Ardee Industries are scheduled to list on the stock exchanges with a combined issue size of around Rs 3158 croreSectors to watch out forSectorally we remain positive on auto and auto ancillary financials chemicals pharma and infrastructure with domestic demand and improving earnings visibility providing support Selective exposure to metals can also be considered if global commodity prices remain supportive We would remain relatively cautious on IT FMCG and other defensive pockets where nearterm upside appears limited while richly valued stocks should be approached selectively Overall the market strategy should remain buy on dips with a preference for sectors showing strong price momentum earnings visibility and institutional participation Palviya saidThis feature article contains statements opinions and quotes provided by third parties Such content has been attributed to the respective speakers and is published for journalistic and informational purposes MidDay does not endorse or assume responsibility for the views expressed by quoted individuals and disclaims liability for any inaccuracies in thirdparty statements