New Delhi, April 19 (NationPress) Investors are closely monitoring developments from the US-Iran peace negotiations, the trend in global crude oil prices, and the ongoing discussions surrounding Q4 FY26 earnings to gauge market dynamics this week, analysts stated on Sunday.

Market analysts indicated that a decline in crude prices, coupled with improving global signals and more stable financial flows, are facilitating a recovery this week.

It is essential for the Indian equity markets to witness continued buying activity to verify a sustainable uptrend, despite easing tensions in the Middle East bolstering this upward momentum.

"The immediate downside risks appear to be relatively contained, while upside momentum is gradually strengthening—indicating a shift from recovery toward a more stable market structure, albeit still reliant on external factors," one analyst commented.

Ongoing stability or further declines in crude prices could serve as a significant boost for equities and enhance the overall macroeconomic outlook.

The markets concluded the shortened trading week with considerable gains, maintaining their upward trajectory for the second consecutive week, aided by improved global sentiment.

“The optimism surrounding a possible US–Iran peace deal has bolstered market confidence, while stable domestic fundamentals have further complemented this momentum,” noted an analyst.

Throughout the previous week, indices experienced intermittent volatility but retained an upward bias, with broader market segments outperforming the main indices.

The Nifty and Sensex each rose by over 1 percent, closing at 24,353 and 78,493, respectively.

A temporary reduction in shipping disruptions through the Strait of Hormuz enabled Brent crude to stabilize around the $92–93 range after correcting towards the $86 level.

Foreign institutional investors showed early signs of stabilization, becoming net buyers during the last three trading sessions of the week.

However, cumulative flows remained slightly negative for the week at approximately Rs 250 crore, prompting investors to seek sustained inflows to affirm a reversal in sentiment.

Conversely, domestic institutional investors, who had been offering consistent support, turned net sellers in the latter sessions, indicating some profit-taking at elevated levels. For the week, DII outflows amounted to around Rs 6,300 crore.

From a technical perspective, the Nifty is consolidating within the 24,100–24,400 range, with immediate resistance near 24,400 and support close to 24,000. A sustained breakout beyond this level could propel the rally towards the 24,800–25,000 range, according to an analyst.

The 56,800–57,000 band continues to be a crucial resistance zone for the Bank Nifty, and only a sustained breakout above this range can drive the index toward 57,500–58,000 levels.

Portfolio allocation may continue to favor fundamentally strong large-cap stocks, while selectively engaging in broader market opportunities, as per market participants' recommendations.

Sector-wise, energy and metal & mining sectors are expected to maintain their outperformance, while other sectors could engage on a rotational basis, analysts forecasted.

On the macroeconomic front, infrastructure output data for March will be revealed on April 20, followed by Manufacturing, Services, and Composite PMI data for April on April 23, which will offer insights into economic momentum.