Mumbai: Next week, the direction of the Sensex and Nifty is poised to be significantly influenced by crucial trade talks, the anticipated Q2 earnings, and the overarching global cues. This confluence of factors is set to create a dynamic trading environment, capturing the attention of investors and market watchers alike.
The action-packed Indian stock markets are expected to witness investors turn their focus to key corporate earnings, a series of upcoming IPOs, and crucial trade negotiations between India and the United States.
These factors are expected to influence the Sensex and Nifty, especially after both indices concluded last week with slight losses.
The Sensex fell 465.75 points, or 0.55 per cent, to settle at 83,938.71, while the Nifty closed 155.75 points, or 0.60 per cent, lower at 25,722 on Friday.
Weak global cues and profit booking, coupled with mixed corporate earnings, weighed on investor sentiment. Over the month, the Sensex rose by 4.6 percent, while the Nifty gained 4.5 percent.
However, broader markets ended lower, with the BSE Midcap index declining by 0.55 percent and the Smallcap index falling by 0.40 percent.
Next week, several major companies, including Bharti Airtel, Titan Company, Adani Enterprises, Adani Ports, InterGlobe Aviation, Mahindra & Mahindra, Paytm, SBI, Britannia, Lupin, Bajaj Auto, and Hindalco Industries, are scheduled to announce their quarterly results.
The market is likely to take cues from these earnings reports for further direction.
On the policy front, Commerce Minister Piyush Goyal stated that India is in the final stages of negotiations with the United States for a bilateral trade agreement. Goyal also mentioned that talks with the European Union are progressing well.
The primary market is set for a busy week, with five initial public offerings (IPOs) opening for subscription—two on the main board and three in the SME segment.
In addition, five new companies will debut on the stock market next week, increasing market excitement.
Analysts indicate that investors should anticipate market volatility next week due to a combination of corporate earnings reports, trade negotiations, and IPO activities.
“Global cues and updates on US-India trade talks will also play a key role in shaping investor sentiment,” they added.
In terms of levels, the Nifty has immediate support at 25,600 and 25,500, which could present buying opportunities during declines.
“On the upside, resistance is seen at 25,800 and 26,000, with the latter acting as a key hurdle. A sustained breakout above 26,000 could trigger a bullish move, potentially targeting the 26,100–26,300 zone in the coming weeks,” market watchers added.
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–IANS
