BackMarkets set to be bullish this week, investors to watch Fed minutes, oil prices
Market likely to continue its bullish tone this week on the back of upbeat investor sentiment after Moody's upgraded India's credit rating last week
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Mumbai: The Indian market is likely to continue its bullish tone this week on the back of upbeat investor sentiment after rating agency Moody’s Investors Services upgraded the country’s credit rating last week.
Investors will also look forward to details of the minutes of Federal Reserve’s meeting that will be released in the week for global cues.
With a shortened trade week in the US, and quarterly earnings out of the way, except for the Fed meeting, there is hardly any key event that could make an impact on the market. The Fed will be releasing the minutes from its October interest-rate meeting on Wednesday.
“The domestic market outlook looks changed after Moody’s upgrade of Indian credit ratings. This upgrade is expected to push liquidity into domestic market. The Q2 results have further given some hopes for revival in earnings growth in near term mainly for large-cap companies," said Vinod Nair, head of research at Geojit Financial Services.
On Friday, Moody’s upgraded India’s sovereign ratings to Baa2 from its lowest investment grade (Baa3) giving credit to the Narendra Modi government for its “wide-ranging program of economic and institutional reforms". It changed the outlook for India’s rating to stable from positive.
Crude oil prices will be closely monitored, with Brent crude oil continuing its upward trajectory, having risen 8.4% to $62.72 a barrel over the last one week
“For the week ahead, with Q2 results out of the way, global cues will be the key driver for the markets, with underlining trend expected to be positive," Nair said.
Technically, Nifty level of around 10,100-10,089 shall continue to act as a crucial support zone in the short term, according to a Sharekhan report on Friday.
“On the other hand, today’s (Friday) high of 10,343 will now be the key hurdle to watch out for. Once the bulls take out that level, then they can aim at the all-time high of 10490," the report said on Friday.
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