Market Outlook: Budget, Q3 results, global economic cues key factors for next week
The Indian stock market outlook for the next week will be guided by the Union Budget, q3 results and global economic cues such as crude oil price, dollar index and US GDP growth rate data.
The Union Budget 2025 will be presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman.
Companies like ACC, Adani Total Gas, Coal India, Piramal Enterprises, Tata Steel, Hyundai Motor India, JSW Energy, Bajaj Finance and Bajaj Auto will present their third-quarter results of FY25 in the next week.
Last week, the Indian equity market continued its downward trajectory, grappling with persistent technical and fundamental headwinds. Both Nifty and Sensex closed with a decline of 0.5 per cent respectively. This was the third consecutive week when the stock market witnessed a sell-off. The Nifty Realty index fell the most by 9 per cent. However, the Nifty IT index saw a rise of about 3.5 per cent.
Foreign institutional investors (FIIs) sold shares worth Rs 22,504 crore in the cash segment. The FIIs outflows exceeded Rs 69,000 crore so far this month.
Meanwhile, Domestic Institutional Investors (DIIs) stepped in with strong net inflows of Rs 17,577 crore during this period.
Puneet Singhania, director at Master Trust Group said, "Nifty trades below critical support levels, including the horizontal zone and ascending trendline, as well as the 21 EMA (exponential moving average), 55-week EMA, and the 200-day EMA, confirming a downtrend. The resistance zone at 23,350-23,450 continues to cap any upward momentum, signalling strong selling pressure."
Santosh Meena, head of research at Swastika Investmart, said, "Bank Nifty remains a weak segment, trading in a narrow range of 47,800-49,800. A breakout above the psychological level of 50,000 is needed for a significant recovery, with 50,800 and 51,500 as subsequent targets. On the downside, if it slips below 47,800, the next support levels are at 47,000 and 46,500."
