Mumbai, Jan 12 The market outlook for next week will be guided by FY25 Q3 results, inflation data, crude oil prices, and domestic and global cues.
Next week, Infosys, HCL Technologies, HDFC AMC, HDFC Life Insurance Company, CEAT, SBI Life, Tech Mahindra, Wipro, and Axis Bank will release their quarterly results for the October to December period. Retail inflation data will be released on January 13.
The Indian stock market witnessed a sharp decline in the trading session from January 6 to January 10. During this period, Nifty fell 573 points or 2.39 per cent to close at 23,431, and Sensex fell 1,844 points or 2.33 per cent to close at 77,378. Bank Nifty was under heavy pressure during this period and closed at 48,734, down 2,254 points or 4.42 per cent.
Puneet Singhania, Director at Master Trust Group said, "All major indices are now trading below their crucial 200-day EMA, highlighting persistent bearish momentum. The sharp decline in the market is attributed to multiple factors, including sustained foreign investor outflows, subdued expectations for Q3 earnings, continued weakness in the Indian rupee against the US dollar, and rising US 10-year bond yields, which have driven FIIs towards the US bond market."
The sentiment of foreign institutional investors (FIIs) continues to remain negative and last week FIIs sold shares worth Rs 16,854 crore in the stock market. At the same time, Domestic Institutional Investors (DIIs) invested Rs 21,682 crore in the cash market.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, "The market structure remains very weak, with 23,263 and 22,800 as important support levels. On the upside, 23,660, 23,770, and 23,900 will act as key resistance levels during any pullback. A meaningful relief rally is expected only if Nifty sustains above the 23,900 level."
"Bank Nifty is trading below key support levels, with 48,600 as an immediate support. If it slips below 48,600, the next support will be at 47,200. On the upside, 49,200 is an immediate and critical hurdle, and above this, 49,800/50,350 will be the next resistance, he added.
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