Cues To Watch Next Week: Q1 Results, IPO Rush, US Tariffs Among 7 Key Factors Affecting Stock Market In Coming Days
The stock market is likely to remain volatile in the coming week as investors track several important developments. | Image:
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Indian equity markets ended last week on a weak note, with the Sensex falling 926 points to close at 82,500 and the Nifty slipping 292 points to 25,149.
As traders look ahead, several key cues will drive market sentiment in the coming days.
Technical Picture: Weakness Emerging
On the technical front, the Nifty has turned cautious. According to Sudeep Shah of SBI Securities, the index broke below its 20-day EMA, a bearish signal. Indicators like RSI and MACD are pointing to emerging weakness. Immediate support is seen around 24,900–24,850, with deeper support at 24,550 if selling continues. For any recovery, Nifty needs to move above 25,300–25,350.
Bank Nifty, meanwhile, traded in its narrowest range in nearly a year. It remains indecisive near its 20-day EMA, with support at 56,200–56,300 and resistance at 57,100–57,200. A clear move beyond this zone will set the next trend.
Key Cues for the Week Ahead
Q1 Earnings Season: This week will see important results from companies including HCL Tech, Tech Mahindra, Wipro, Axis Bank, ICICI Bank, JSW Steel, L&T Finance, and HDFC Bank. TCS shares fell nearly 3.5% last week after earnings disappointed investors, raising caution for other IT majors.
Macroeconomic Data: Markets will track July 14 inflation data—both WPI and CPI—for insights into price trends and possible policy moves.
Global Developments: Uncertainty over US tariff moves against Brazil and Canada, as well as potential trade talks with India, could impact sentiment. A stronger US dollar has already weighed on emerging market currencies.
IPO Pipeline: Several IPOs, including Crizan Ltd and Glen Industries, are expected to hit the market, keeping primary market activity strong.
FII Flows: Foreign investors turned net sellers last week, offloading Rs 5,156 crore worth of shares. In contrast, domestic institutions bought Rs 3,483 crore. The trend in foreign flows will be closely watched.
Movements in Big Stocks: Eight of the top 10 most valued companies lost market cap last week, with TCS and Bharti Airtel being the worst hit. Hindustan Unilever bucked the trend, adding Rs 42,363 crore in value after appointing Priya Nair as its first woman CEO.
Rupee Action: The rupee weakened 0.11% to 85.73 amid higher gold prices, capital market losses, and dollar strength. It is expected to trade between 85.25 and 86.20 in the near term.