Stock Market Outlook for the Week Ahead: Key Triggers and Analysis

Indian stock markets are on a bullish run ahead of the high-stakes Lok Sabha election results on June 4, 2024. The Nifty 50 and Sensex have recorded their biggest two-week winning streak in the last five months, reaching new milestones and reclaiming record highs. The positive momentum is driven by strong macroeconomic fundamentals, foreign fund inflows, and the upcoming election results.

Analysts expect the markets to continue their upward trend, with Nifty 50 likely to move towards the 23,150-23,400 range soon. The week ahead will see the final batch of Q4FY24 results, new IPOs and listings, FII activity, global cues, oil prices, and corporate actions influencing market sentiment.

Foreign institutional investors have shown a shift in sentiment, turning into net buyers after a period of selling. The upcoming Lok Sabha election results are expected to further boost FII flows into the Indian markets. Additionally, global cues, including US Federal Reserve policy decisions and Eurozone CPI data, will be closely monitored for their impact on market sentiment.

Oil prices have seen a decline in recent weeks, with Brent crude logging its longest weekly losing streak in five months. The upcoming OPEC+ meeting on June 2 will decide on extending oil output cuts, which could impact crude prices further. Corporate actions, such as ex-dividend trading and buyback announcements, will also be key factors to watch in the coming week.

Overall, market analysts advise a stock-specific trading approach, with a preference for large-cap and large mid-cap stocks for short-term trades. The technical view suggests a bullish trend with strong support levels and potential for further upside in key sectors like banking and IT. Investors are advised to consult with certified experts before making any investment decisions due to rapidly changing market conditions.