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News Topical, Digital Desk : US President Donald Trump's H-1B visa ban, its impact on Indian IT companies, renewed attacks on Indian shrimp exports to the US, Prime Minister Narendra Modi's address to the nation, the first day of Navratri, and the implementation of lower GST rates—all these news will impact the stock market on Monday. Nifty investors were hoping for another good week. However, Friday saw a nine-day winning streak break. Nifty failed to cross the 25,500 level, but managed to hold the 25,300 level.
Market movements on Monday will depend on how IT stocks react to the H-1B visa news. Shares of US-listed companies Infosys and Wipro fell up to 4% on Friday. The White House clarified that the $100,000 H-1B visa fee will only apply to new applications.
Consumer stocks like auto, FMCG, and consumer durables will be closely watched due to the new GST rates that come into effect today. Auto stocks are at record highs, and next week's sales figures will be crucial. US senators have introduced the "India Shrimp Tariff Act" to protect Louisiana's shrimp and catfish industry from cheap Indian imports. Keep an eye on stocks like Avanti Feed, Apex Frozen, and Waterbase.
Taking cues from global markets, Wall Street's main indexes closed at record highs for the second consecutive session on Friday. Trading levels reached their highest since April after strong FedEx earnings. Seven of the S&P's 11 sectors gained, although energy stocks weighed on the market. Dow Jones: Up 172.85 points (0.37%) at 46,315.27. S&P 500: Up 32.40 points (0.49%) at 6,664.36. Nasdaq Composite: Up 160.75 points (0.72%) at 22,631.48. European stocks remained almost flat on Friday. The sentiment was influenced by central bank decisions, including the Federal Reserve's interest rate cut.
FIIs and DIIs data show foreign and domestic institutional investors were net buyers in the cash segment of the domestic stock market on Friday.
Outlook on Nifty: The 25,500 level is a major hurdle for Nifty, while 25,250 and 25,200 could act as support. Rajesh Bhosale of Angel One said that 25,200-25,100 is strong support and 25,450-25,500 is resistance. The June high of 25,670 could be the next target. Ajit Mishra of Religare Broking said that trendline resistance is near 25,500. A breakout above this could lead to gains towards 25,750, while 24,900-25,150 would be support. Sudip Shah of SBI Securities said that Nifty Bank broke its 12-day rally and closed below 55,500. It has gained more than 2,200 points from its recent low of 53,578. The 20-day and 50-day EMAs are sloping upward, indicating a bullish trend. 55,000-54,900 is support, and 55,900-56,000 is resistance. A breakout above 56,000 could lead to gains towards 56,800 and 57,500.
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