Key Triggers Next Week: Q2 GDP, FIIs Data, and Global Cues Market Outlook
Market experts are eyeing some major influencers for next week’s stock market performance. Key factors include escalating tensions between Russia and Ukraine, rising crude oil prices, foreign institutional investors’ activities, and Q2 GDP data. Last week, amidst geopolitical tensions, the Indian equity markets saw a positive turn with the Nifty closing 2.39% higher at 23,907.25 and the Sensex closing 2.54% higher at 79,117. Nifty and Sensex both rallied by 1.45% and 1.78% for the week, respectively. The positive trend was observed across various sectors except energy, with realty, auto, and fast-moving consumer goods making significant contributions.
The market sentiment was bolstered by the Maharashtra and Jharkhand election results, viewed as potentially significant for state and national politics, thus boosting investor confidence. Looking ahead, technical analysis indicates key resistance levels for Bank Nifty between 51,300 to 52,000, with further resistance at 52,600 to 53,300 if higher levels are surpassed. For the Nifty benchmark, 24,100 is identified as a crucial resistance point, with an upward potential towards 24,500 if breached. Conversely, 23,700 serves as an important support level, with a downside risk to 23,400 if broken.
Forecasting into the next quarter, market analysts predict a possible 6.5% contraction in GDP for Q2FY25, attributing this downturn to adverse weather conditions and weak margins that counterbalance the positive effects of increased government capital expenditure and favorable kharif sowing trends. As we await further developments in these key areas, the market outlook remains dynamic and influenced by both domestic and international factors.
