New Delhi, Delhi
The Indian stock market witnessed a sharp decline last week amid global pressures. Going into the coming week, market direction is likely to be influenced by three major developments: the RBI’s monetary policy review, second-quarter corporate earnings, and geopolitical tensions in West Asia.
The Sensex fell 1,670.84 points last week to close at 71,909.70. The Nifty also declined by more than 3% to close at 22,421.95. From a technical perspective, the Nifty has now closed lower for the eighth consecutive week.
According to analysts, the Nifty’s weekly RSI is around 31.06, indicating weak market momentum. However, the index is approaching the oversold zone, which could lead to a technical recovery from lower levels.
In the near term, the 22,800 and 23,000 levels are being viewed as key resistance zones for the Nifty. On the downside, 22,350 and 22,180 could act as important support levels.
Investors will closely monitor the RBI’s monetary policy review next week. The central bank’s stance on interest rates, inflation and economic growth could provide important signals for the market.
Corporate Q2 earnings will also play a key role in determining market direction. In addition, developments in West Asia, crude oil prices and U.S. bond yields could influence investor sentiment.
Domestic economic indicators remain relatively strong. Industrial production growth stood at 8% in August. The manufacturing sector grew by 9%, while electricity and gas supply increased by 12.3%.
Markets will also track key U.S. economic data, including non-farm payrolls and the ISM Manufacturing PMI. With several important domestic and global factors in focus, market volatility is likely to remain elevated next week.
