Fed FOMC, FII action among top 10 factors to dictate Dalal Street mood this week

Option data suggests a broader trading range in between 17000 to 17800 zones while an immediate trading range in between 17300 to 17600 zones.

Indian markets ended the week in the red, with the Nifty50 dropping 0.85%. Experts suggest that the futures market will provide cues for Monday's opening, with impacts from US markets over the previous week to be taken into account. Major global events next week include a Policy Panel Discussion led by Chair Jerome Powell at the European Central Bank Forum on Central Banking 2023. Technical data shows that any future corrections should be seen as a buying opportunity while, on a corporate level, technology IPOs and buybacks are also worth tracking.

Major June quarter earnings are lined up for this week. Tata Steel, Bajaj Auto, Asian Paints, SBI Life Insurance Company, Tata Motors, Larsen & Toubro, Tata Consumer Products, Bajaj Finance, Tech Mahindra, Dr Reddy's Laboratories, Cipla, Axis Bank, Nestle India, Bajaj Finserv, among others will declare their Q1 earnings.

The week ahead will be important for the markets as the Reserve Bank of India (RBI) will announce its monetary policy decisions, and investors will closely monitor global events such as the US manufacturing PMI data, UK manufacturing data, and China's manufacturing PMI data. The movement of the Indian rupee against the US dollar and crude oil prices will also impact market performance.

India was the second-best performer among the emerging markets in FY23 after South Africa. Equity benchmarks of some countries, such as Russia, Indonesia, Singapore, Thailand, Hong Kong, South Korea, and Taiwan, fell between 3% and 10% in FY23. The resilience in Indian equities was thanks to the flows from domestic investors.

Indian stock markets ended the last week of May with strong gains and have begun the June series on a positive note; the Nifty50 gained 1.63% for the week and crossed the resistance of 18,400 to close at 18,499.35. Investors are advised to remain cautious as we approach the June series expiry. Markets will take cues from Wall Street, which will remain closed on Memorial Day. The week will also bring several important domestic and global economic events for investors to track, along with the possible impact of movements in the US debt ceiling, crude oil prices, and government bond yields on market performance.

When stock markets resume trading on Tuesday in the holiday shortened week, a host of important domestic and global events lined-up during this week are likely to impact them. The underlying tone of the market remains positive. Major global markets will remain shut for trading on December 25, Monday on account of Christmas holiday.

Markets week ahead: A host of economic data including GDP and PMI, alongside ex-dividend stocks, Q4 results, auto sales, and global trends are some of the key factors to dictate Indian markets during the trading week from May 29th to June 2nd.

Option data suggests a shift in trading range in between 19500 to 20200 zones while an immediate trading range in between 19600 to 20000 zones.

After relentless selling in recent days, Nifty has temporarily paused its decline due to an oversold chart setup, Rupak De, Senior Technical analyst at LKP Securities said, adding that the index closed significantly below the critical breakdown level of 19,250. As long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements, he opined as he sees a further downside opening below 18,800 if weakness continues from here, he added.