As Indian stock markets enter a critical week, investors are keeping a close eye on two major developments: the Q1 FY26 earnings season and the outcome of the interim India-US trade deal expected before the July 9 deadline.
After recent profit booking, especially at elevated index levels, analysts expect earnings momentum and trade clarity to be the key drivers of market direction.
Global factors are also in play
The upcoming OPEC+ meeting, scheduled for the weekend, could influence crude oil prices and, in turn, impact sectors sensitive to energy costs.
“Favourable macroeconomic conditions like softening inflation and falling interest rates are providing support to the broader economy. If India and the US reach a trade agreement, it could significantly boost investor sentiment, particularly in IT, pharma, and auto sectors,” said Vinod Nair, Head of Research at Geojit Financial Services.
Indices close higher despite range-bound trading
Last week, Indian equity benchmarks ended positively in a largely rangebound trading environment.
The Nifty 50 closed at 25,461, gaining 55.7 points, while the Sensex rose 193 points to end at 83,432.
Sectors like banking, pharma, IT, realty, oil & gas, and media supported the rally, each registering gains of 0.4% to 1%.
In contrast, metals, telecom, and auto underperformed, limiting the overall market upside.
India-US deal may trigger next market leg
According to a note from Choice Broking, investor sentiment remains ‘cautiously optimistic’ ahead of the India-US trade deadline.
The note highlighted that a favourable outcome could serve as a major trigger for the next leg of the rally, especially since the market has lacked clear direction recently.
Technically, Fibonacci extension analysis suggests the next major upside targets for Nifty at 27,300 and 28,600, while key downside supports are placed at 25,000 and 24,500, where buyers may step in.
Bank Nifty holds key level despite weekly decline
The Bank Nifty index closed at 57,031.90, down 0.72% from the previous week.
Although the index faced resistance at higher levels, it managed to stay above the crucial 57,000 mark, indicating the possibility of a sideways movement in the near term.
Options data shows strong put interest at 57,000 and 56,500, establishing these as immediate support zones.
Meanwhile, calls at 57,000 and 57,500 points to potential resistance, suggesting a likely trading range between 56,500–57,500.
Foreign Institutional Investors (FIIs) have taken a more cautious stance amid high valuations and uncertain global signals.
However, Domestic Institutional Investors (DIIs) have continued to lend support, helping maintain overall market stability.
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