What Key Factors Should We Monitor in the Stock Market Next Week?

Mumbai, Sep 7 (NationPress) The upcoming week is anticipated to be pivotal for the Indian stock markets, influenced by tariffs, inflation data, foreign institutional investor (FII) activity, and significant global economic indicators.

On September 12, the government is set to unveil retail inflation statistics. The retail inflation rate was recorded at 1.55 percent in July, indicating the speed at which prices of goods are increasing and providing insights into the demand and supply conditions within the economy.

Reports indicate that U.S. President Donald Trump has enacted an executive order offering tariff exemptions to trade partners who have established industrial export agreements.

Beginning Monday, essential materials such as nickel, gold, pharmaceutical compounds, and chemicals will benefit from these tariff exemptions.

Moreover, the U.S. is scheduled to release its inflation and unemployment claims data next week, which could impact global market trends.

Last week proved to be positive for Indian equities. The Nifty Index rose by 314.15 points, or 1.29 percent, to close at 24,741, while the Sensex climbed 901.11 points, or 1.13 percent, finishing at 80,710.76.

From September 1 to 5, sectoral indices such as Nifty Auto (up 5.45 percent), Nifty Metal (up 5.75 percent), Nifty Energy (up 1.96 percent), Nifty PSU Bank (up 1.47 percent), Nifty Commodity (up 2.52 percent), and Nifty Consumption (up 2.58 percent) stood out as the biggest gainers.

The only sector showing a decline was the Nifty IT index, which dropped by 1.55 percent.

FIIs continued their selling trend last week, offloading equities worth ₹5,666.90 crore, while domestic institutional investors (DIIs) provided support with net purchases totaling ₹13,444.09 crore.

Commenting on market movements, Sudeep Shah from SBI Securities noted that the Nifty experienced considerable volatility last week, with gap-up and gap-down openings across all five sessions.

Yet, on a weekly basis, the index appears bullish. He indicated that the resistance zone for Nifty is between 24,950 and 25,000, while support is expected in the range of 24,550 to 24,500.

Ajit Mishra from Religare Broking Limited remarked that the Nifty rebounded from a low of 24,400, slightly surpassing the previous swing low of 24,337.5, but continues to consolidate within a triangular pattern marked by lower highs at 25,153.65 (August 21) and 24,980.75 (September 4).

“A decisive breakout above 25,000 may trigger renewed momentum, propelling the index toward 25,250 and then 25,400,” Mishra added.