The Nifty 50 ended in the green for the third consecutive week, marking its longest winning streak since June. Dr. Ravi Singh said, “The index continues to form higher highs and higher lows, indicating sustained bullish momentum.” Investors now watch global oil prices and inflation data for future market cues.
Stock market outlook, November 16-20: The Nifty 50 ended in the green for the third consecutive week, marking its longest winning streak since June. The benchmark index gained 114 points, or 0.46%, last week, supported by strong foreign investor inflows and stronger corporate earnings.
Renewed investor optimism towards domestic equities following a correction in global AI stocks also supported Nifty 50 and Sensex. The benchmark indices have surged nearly 9.70% over the past month. As we look ahead to next week, the key question is whether the stock market rally will extend into November 16-20 or take a breather after three consecutive weeks of gains.
Stock market outlook for next week
The Indian stock market is likely to remain volatile with upward bias in the coming week as Nifty 50 continued to form higher highs and higher lows over the past few trading sessions. The trend indicated a bullish momentum, highlighted Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd.
Stock market next week: What should be investors’ strategy?
“The index continues to form higher highs and higher lows, indicating sustained bullish momentum. As long as Nifty holds above the crucial horizontal support zone of 24,750, the overall technical outlook remains positive,” explained Singh.
Global crude oil price volatility, Indian Rupee movement, signals on the US Federal Reserve’s policy trajectory and geopolitical developments around the Iran-US war are likely to impact the stock market investors’ sentiment in the coming week.
“In the coming weeks, the sustainability of these foreign inflows will be the key variable, with market participants closely tracking US-Iran geopolitical developments and their impact on crude oil prices. Market participants will also keep an eye on US FOMC minutes and India’s WPI inflation data for cues on the coming monetary policy outlook,” explained Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
Investors can consider opting for a ‘Buy on Dips’ strategy for Nifty 50, recommended Ravi Singh. “A buy-on-dips strategy remains favourable, with upside targets placed at 25,500 and 25,850. Any occasional profit booking or correction towards support levels should be viewed as a potential buying opportunity, provided the broader market structure remains intact,” added Singh.
Sensex Nifty weekly recap
Nifty ended 0.61% lower at 25,144 points on Friday, November 13. BSE Sensex closed 0.39% lower at 81,592.45 points. Both the benchmark indices surrendered most of their weekly gains and ended their week marginally higher.
Bank Nifty outperformed and closed with gains of 3.7%. Broader markets outperformed with Nifty Midcap 100 and Nifty small cap 100 closed with 2% and 2.6% gains relatively.
“On the sectoral front, PSU Banks and the broader Bank Nifty emerged as the undisputed leaders, surging 3.71% on the back of strong institutional buying in heavyweights like State Bank of India. Conversely, rate-sensitive sectors such as Realty and Auto, alongside Information Technology and Metals, faced selling pressure toward the week's close following the hot inflation print,” explained Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.