The stock market is on a bullish streak, with the Nifty closing above 22,400 for the third consecutive week. The market saw a record-high close following strong GDP data, with the bank nifty outperforming expectations. Foreign Institutional Investors (FIIs) have transitioned from being net sellers to buyers, while Domestic Institutional Investors (DIIs) continue to lead the market with significant purchases.
Global markets have also been positive, with the Nasdaq, S&P 500, and Dow Jones all showing gains in February 2024. US 10-year bond yields and the dollar index have moderated, further supporting market sentiment. Key upcoming events, such as the release of the US ISM services PMI and testimony by US Fed Chair Powell, will be closely watched for their impact on market sentiment.
Domestically, attention will be on political developments leading up to parliamentary elections, with potential support for the Nifty Bank from FTSE flows. The Nifty is expected to continue its bullish momentum, with immediate target levels at 22,500 and 22,750. On the derivatives front, FIIs have a long exposure in index futures, indicating a bullish bias.
Overall, the market is optimistic despite potential challenges such as rising crude oil prices. Investors are keeping a close eye on upcoming events and market trends to make informed decisions.
