Market outlook: US Fed meeting, Q2 earnings, trade deals likely to drive market sentiment next week

Mumbai, Oct 26 The coming week is expected to be crucial for Indian equity markets, with multiple key factors likely to influence investor sentiment.

The US Federal Reserve meeting, Q2 earnings announcements, IIP data, and developments related to the US-China and US-India trade deals will play a major role in determining the market’s direction.

The US Federal Reserve’s policy meeting is scheduled for October 28–29. Analysts believe the Fed may consider an interest rate cut, which could have a positive impact on both global and domestic markets.

Several major companies are set to release their quarterly earnings next week, including Indian Oil, TVS Motor Company, L&T, Hindustan Petroleum, ITC, Cipla, Dabur India, Maruti Suzuki India, BEL, and ACC.

Trade deal developments will also be closely watched, as the US is actively working on agreements with both China and India.

Any significant progress on this front could trigger strong market reactions.

During the past week, Indian stock markets ended slightly higher. The Nifty closed at 25,795.15, up 0.33 per cent or 85.30 points, while the Sensex gained 0.31 per cent or 259.69 points to settle at 84,211.88.

Sector-wise, Nifty IT gained 2.96 per cent, PSU Bank rose 2.34 per cent, Pharma advanced 0.47 per cent, Metal climbed 1.45 per cent, Realty gained 0.77 per cent, Energy rose 0.65 per cent, and Media added 1.35 per cent.

However, Nifty Auto slipped 0.44 per cent, Financial Services fell 0.52 per cent, and FMCG declined 0.47 per cent.

Midcap and smallcap indices also witnessed gains. The Nifty Midcap 100 Index rose 328.95 points or 0.56 per cent to 59,231.20, while the Nifty Smallcap 100 Index advanced 130.95 points or 0.72 per cent to close at 18,253.35.

Analysts said that currently, Nifty continues to trade above its 20-day, 50-day, and 200-day EMAs, highlighting a strong underlying bullish structure and sustained trend strength.

“On the weekly timeframe, the RSI stands at 61.60 and is trending sideways, indicating a neutral-to-positive bias with potential for renewed momentum once consolidation ends,” they added.

“On the downside, a decisive break down below 25,670 could accelerate weakness towards 25,500, and further down to 25,400. Conversely, on the upside, immediate resistance is seen at 25,950, followed by 26,000 and 26,100,” experts said.

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