Market Insights: Key Indicators for the Upcoming Week Including Q3 Earnings and Inflation Trends

Mumbai, Jan 12 (NationPress) The market insights for the upcoming week will be influenced by FY25 Q3 earnings reports, inflation metrics, crude oil prices, and various domestic and international signals.

Next week, Infosys, HCL Technologies, HDFC AMC, HDFC Life Insurance Company, CEAT, SBI Life, Tech Mahindra, Wipro, and Axis Bank are set to announce their quarterly earnings for the period spanning October to December. The release of retail inflation metrics is scheduled for January 13.

The Indian stock market experienced a notable downturn from January 6 to January 10. During this timeframe, Nifty dropped by 573 points, or 2.39 percent, concluding at 23,431, while Sensex declined by 1,844 points, or 2.33 percent, settling at 77,378. The Bank Nifty faced significant pressure, finishing at 48,734, down 2,254 points, or 4.42 percent.

Puneet Singhania, Director at Master Trust Group, stated, "All major indices are currently trading below their essential 200-day EMA, indicating ongoing bearish momentum. The sharp decline in the market is linked to several factors, including sustained foreign investor outflows, muted expectations for Q3 earnings, ongoing weakness in the Indian rupee against the US dollar, and rising US 10-year bond yields, prompting foreign institutional investors towards the US bond market."

The sentiment among foreign institutional investors (FIIs) remains pessimistic, with FIIs selling shares worth Rs 16,854 crore in the stock market last week. Conversely, Domestic Institutional Investors (DIIs) invested Rs 21,682 crore in the cash market.

Pravesh Gour, Senior Technical Analyst at Swastika Investmart, commented, "The market structure is notably weak, with 23,263 and 22,800 serving as critical support levels. On the upside, 23,660, 23,770, and 23,900 will function as significant resistance levels during any potential recovery. A substantial relief rally is anticipated only if Nifty maintains levels above 23,900."

"The Bank Nifty is trading below crucial support levels, with 48,600 as immediate support. Should it fall below 48,600, the next support will be at 47,200. On the upside, 49,200 represents an immediate and vital hurdle, and above that, 49,800/50,350 will become the next resistance," he added.