Market Outlook: Q2 results, FIIs and CPI data key factors for next week

MUMBAI: The market outlook for next week will be guided by the major domestic and global economic data such as India WPI Inflation (YoY) (Sep), India CPI (YoY) (Sep), India Bank Loan Growth and Deposit Growth, Indian companies Q2 results and major updates from the US, China and Japan.

The second quarter results season has started. This week will feature numerous earnings reports that could lead to stock- and sector-specific movements.

Besides, fluctuations in crude oil price, movement of the dollar index and activities of foreign institutional investors (FIIs) can also affect market movements.

The past week saw a period of consolidation following a steep decline from all-time highs in the Nifty and Sensex. The week began with a dip, but the markets recovered from their lower levels.

While foreign institutional investors (FIIs) continued selling, the pace moderated somewhat. FIIs sold approximately Rs 28,000 crore, but domestic institutional investors (DIIs) offset this with purchases exceeding Rs 31,000 crore.

Santosh Meena, Head of Research, Swastika Investmart said: "On a technical basis, the Nifty has formed a near-term bottom around the 24,750 level. It needs to surpass resistance levels at 25,330 and 25,500 to regain momentum. A move below 24,750 could trigger additional selling pressure towards 24,440 and 24,100."

Palka Arora Chopra, Director of Master Capital Services said, "Bank Nifty continues to trade within a parallel channel and remains above the weekly 21 EMA, indicating a positive trend. Despite facing pressure at higher levels, the index managed to close above the channel. Support was currently at 50,600 with a potential fall towards 50,000 if breached. Resistance is noted at 51,700 and a breakout above this level could lead to 52,200. The market is likely to remain sideways in the coming week, suggesting a buy-on-dips strategy."

Last week, the Reserve Bank of India (RBI) kept its key interest rate unchanged, but changed its policy stance to "neutral", opening the door for rate cuts as early as December. FY25 GDP growth estimates were retained at 7.2 per cent, while the CPI Inflation forecast for FY25 remained at 4.5 per cent.