Market Outlook: Q3 Results, Inflation, and Economic Cues to Guide Next Week
The market outlook for next week will be shaped by Q3 earnings reports, inflation data, and key economic factors, including crude oil prices and global cues. Key results from major companies like Infosys, Wipro, and Axis Bank are expected.
The market outlook for next week will be shaped by Q3 earnings reports, inflation data, and key economic factors, including crude oil prices and global cues. Key results from major companies like Infosys, Wipro, and Axis Bank are expected.
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Mumbai: The market outlook for next week will be influenced by a variety of factors, including FY25 Q3 results, inflation data, crude oil prices, and both domestic and global cues.
Key Earnings Releases and Inflation Data
Next week, several major companies are set to release their quarterly results for the October to December period, including Infosys, HCL Technologies, HDFC AMC, HDFC Life Insurance Company, CEAT, SBI Life, Tech Mahindra, Wipro, and Axis Bank. Retail inflation data will be disclosed on January 13, adding further market insights.
Recent Market Performance
The Indian stock market experienced a sharp decline in the trading session from January 6 to January 10. During this period, the Nifty fell 573 points (2.39%) to close at 23,431, and the Sensex dropped 1,844 points (2.33%) to close at 77,378. Bank Nifty was particularly under pressure, closing at 48,734, down 2,254 points (4.42%).
Market Sentiment and Foreign Institutional Investor Outflows
Puneet Singhania, Director at Master Trust Group, highlighted that major indices are now trading below their crucial 200-day EMA, signaling persistent bearish momentum. The sharp market decline has been attributed to various factors, including sustained foreign investor outflows, subdued expectations for Q3 earnings, weakness in the Indian rupee against the US dollar, and rising US 10-year bond yields. These factors have driven foreign institutional investors (FIIs) towards the US bond market.
The sentiment among FIIs remains negative, with FIIs selling shares worth Rs 16,854 crore in the stock market last week. In contrast, Domestic Institutional Investors (DIIs) invested Rs 21,682 crore in the cash market.
Also Read: Indian Stock Market Ends Lower, IT Sector Shines
Technical Analysis and Key Support Levels
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, noted that the market structure remains weak. Important support levels for Nifty are at 23,263 and 22,800, while key resistance levels on the upside are at 23,660, 23,770, and 23,900. A meaningful relief rally is expected only if Nifty sustains above the 23,900 level.
For Bank Nifty, immediate support is at 48,600, and if it slips below this, the next support level will be at 47,200. On the upside, the immediate critical resistance is at 49,200, followed by 49,800/50,350.
