This week, the movement of the Indian stock market will be decided by the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), manufacturing and services PMI data, and global economic data. Last week, the market saw strength due to the victory of the BJP alliance Mahayuti in the Maharashtra elections. Nifty rose 223 points to 24,131 and Sensex closed at 79,802, up 685 points.

However, the market continued to fluctuate due to global instability. Banking stocks played a major role in this rally, with Bank Nifty rising 1.80% to 52,055. HDFC Bank touched a new all-time high of Rs 1,836.

FII-DII impact

Last week, selling by foreign institutional investors (FIIs) declined. Between November 25 and 29, FIIs sold shares worth Rs 5,026 crore, while domestic institutional investors (DIIs) bought shares worth Rs 6,924 crore.

Experts believe that the activities of FII and DII will have a big impact on the market. If foreign investors continue selling, there may be pressure in the market.

Expectations from RBI meeting

According to Vinod Nair, Head of Research, at Geojit Financial Services, the direction of the market will largely depend on the decisions of the RBI MPC. Given the current growth rate, there is little chance of a change in the repo rate, but the central bank may hint at a rate cut in February. Apart from this, manufacturing and services PMI data, auto sales figures, and US job data will also affect the market movement.

Technical Analysis: Performance of Nifty and Bank Nifty

According to Palka Arora Chopra, Director, Master Capital Services, Nifty has closed above the support of 23,800. If this level breaks, then Nifty can go up to 23,400. At the same time, a new rally can be seen if the level of 24,800 is crossed.

Bank Nifty also showed strength and maintainedae support zone of 51,750-51,850. If this zone breaks, then Bank Nifty can slip to 51,100. On the upside, if it crosses the level of 52,400, then a rise to 53,000 is possible.

Strategies for investors

This week investors should remain cautious while managing their portfolio. Keep a close eye on economic indicators and RBI policies. Follow technical levels and look for better opportunities for long-term investment.

It is worth noting that economic data and RBI meetings will be decisive for the market. Amidst the balance of global and domestic factors, investors need tomakee decisions wisely.