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Q3FY25 earnings expectations and global cues to drive market sentiments

ICICIdirect Research 27 Dec 2024 DISCLAIMER

Nifty witnessed lacklustre activity and settled the truncated week at 23885, up 1%. Meanwhile, trading activity remained muted tracking below 1-month average volume at 80000 cr.

What to expect:  Past four sessions Nifty has been trading in a narrow range, highlighting supportive efforts above 200 days EMA amid oversold conditions. Going ahead, a decisive close above 23900 would fuel the upward momentum towards 24400 in coming weeks. Failure to do so would lead to prolongation of consolidation in 23900-23200 range amid stock specific action.
Rise in volatility: In the month of January volatility would remain elevated tracking new policy measures from Trump government, Q3FY25 earning season and Budget expectation which would have bearing on the market sentiment

Key monitorable: Nifty and Bank Nifty both holding their 52-week EMA (23300 and 49800, respectively) will be important to watch out for as holding above the same would keep pullback options open

Sectorally, we remain positive on BFSI, IT, Pharma while Capital Goods and PSU space offers bargain buy opportunity

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