Market Outlook: Q1 Results, Inflation And FIIs Activity To Influence Next Week

Last week, the Indian equity market experienced volatility amid fears of a potential slowdown in the US, driven by weak economic data and disappointing corporate guidance.

Both major indices ended the week lower. Nifty closed at 24,367.50, down 1.42 percent, while Sensex settled at 79,705.91, down 1.58 percent from the previous week.

Foreign institutional investors (FIIs) sold Rs 19,139.76 crore in the cash segment last week. In contrast, domestic institutional investors (DIIs) continued their buying spree, acquiring Rs 20,871.10 crore in the cash segment.

Also Read: Finance Minister Urges Banks To Boost Deposits & Lending For Government Schemes

Looking ahead, several key factors will influence the market. Bluechip companies, including Hero MotoCorp, Hindalco, and Apollo Hospital, are set to release their first-quarter results for the current financial year. Additionally, They will unveil figures for July inflation as well. The activity of foreign institutional investors (FIIs) and fluctuations in crude oil prices will also impact market direction.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services, observed, “Nifty index has formed a Hammer candle on the weekly charts, indicating a potential further upside move in the coming week after a contraction of a thousand points from its life highs. The next resistance level is at 24,400, and if this level breaks, we could move towards 25,000.”

He added, “On the support side, 24,000 will act as a major support and if the NSE benchmark moves below this, we could see a fall towards 23,500.”

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, noted, “Bank Nifty is trying to establish a base around its 100-DMA at 50,000 after a period of prolonged underperformance. The 20-DMA at approximately 51,200 will be a significant challenge for any potential bounce-back.”