Market Outlook: Q2 results, global cues and FIIs outflows key triggers for next week
Profit booking was seen by the foreign investors and retail investors, coupled with muted earnings, tepid demand environment, margin pressure and softer guidance by many companies, contributing to this week's fall.
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MUMBAI: Market outlook for next week will depend upon the next set of July-September quarter results for fiscal 2024-25 (Q2FY25), the scheduled monthly derivates expiry, FII activities, geopolitical tensions, US Presidential election polls and global and domestic macroeconomic data, as per experts.
Last week, the benchmark indices fell as sharp selling across all the sectors. Profit booking was seen by the foreign investors and retail investors, coupled with muted earnings, tepid demand environment, margin pressure and softer guidance by many companies, contributing to this week's fall.
Nifty 50 ended the week with 2.71 per cent decline at 24,180 and Sensex was down 2.24 per cent at 79,402.
Foreign Institutional Investors (FIIs) have recorded significant outflows of around Rs 1 lakh crore so far in October, while domestic institutional investors (DIIs) have bought equities worth approximately Rs 97,000 crore.
Santosh Meena, Head of Research at Swastika Investmart said: "The NSE benchmark has broken down from a major head-and-shoulders pattern, increasing the likelihood of a test at its 200-day moving average (DMA) level which is around 23,400. Now the support is at 24,000-23,900, while 24,600-24,700 remains a resistance zone, with 25,000 as a significant hurdle on the upside."
Palka Arora Chopra, Director of Master Capital Services said: "Bank Nifty has experienced a decline of over 7.5 per cent from its all-time highs and fell by 2.51 per cent this week, closing below the 51,100 mark and the 21-week EMA, signalling increased selling pressure. This selling pressure follows disappointing September quarter results from Kotak Bank, AU Bank and IndusInd Bank. For Bank Nifty, immediate support is positioned at 50,200; breaking this level could extend the decline to 49,600."
"Overall, while DIIs continue to lend support to the market, the direction largely depends on FII flows, earnings outcomes, and the global geopolitical landscape," she added.