New Delhi, Feb 8 (NationPress) The upcoming week presents several crucial domestic and global factors that are expected to influence stock markets, notably the inflation data (with a revised base year of 2024) and additional insights on the India-US trade agreement.

In India, market participants will pay close attention to the retail inflation figures set to be released on February 12, which will use the new base year, followed by the WPI inflation and foreign exchange reserves reports on February 13. These data points are vital for understanding price trends and the stability of the external sector.

Analysts indicate that further information regarding the interim trade agreement framework between India and the US will also be a focal point.

The earnings calendar remains active, with significant results anticipated that are likely to spur stock-specific movements.

On a global scale, investors will be keeping an eye on a busy US data calendar and the performance of the Nasdaq Composite after its recent downturn.

Geopolitical events will also be under scrutiny, especially the ongoing negotiations between the US and Iran.

Any failure in these discussions could lead to increased volatility in global financial and commodity markets, as it might raise the chance of US military involvement and a broader conflict in the Middle East, according to market observers.

Additionally, fluctuations in the Indian rupee — following its sharp recovery from a historic low due to the announcement of the India-US trade deal — along with trends in foreign portfolio investor inflows, will be crucial indicators of the near-term market direction, acting as significant measures of risk appetite and liquidity conditions, stated Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth technology firm.

With the Union Budget 2026 and the RBI's monetary policy decisions largely accounted for, the Indian equity markets have entered a consolidation phase, shifting investor focus towards execution, capital expenditure, and the pace of actual spending, he noted.

Overall market sentiment remains cautiously optimistic, with expectations that markets will be event-driven in the near term, influenced by global cues, capital flows, and geopolitical developments in the Middle East, analysts suggest.

The Nifty index experienced considerable volatility last week, reaching a weekly high of 26,341 and a low of 24,679, ultimately settling at 25,693.70, which reflects a notable gain of 868 points.

On the weekly chart, the Nifty formed a strong bullish candlestick, closing decisively above the 20-week EMA, indicating a positive change in the medium-term trend structure and bolstering bullish sentiment.

“Immediate resistance is at 25,800, followed by 26,000 and 26,200 levels. On the downside, support is identified at 25,500 and 25,200. A breakdown below 25,100 could amplify downside pressure and accelerate corrective actions,” remarked Aakash Shah, Technical Research Analyst at Choice Broking.