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Market Outlook: Budget, Q1 Results, FII Inflows Are Key Factors for the Week Ahead

Mumbai, July 21 Indian stock indices witnessed volatility in the past week. Indices witnessed buying behaviour at the beginning of the week but profit taking was witnessed in the markets in the last session.

However, Sensex and Nifty have posted small weekly gains. It is also the seventh consecutive week that benchmark indices have fallen.

Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 in the Lok Sabha on Tuesday, July 23, 2024. Several factors will influence the market direction, including Q1 FY25 earnings reports, domestic and global economic data and broader global market trends. The market sentiment will be closely monitored by observing FII and DII activity and crude oil prices.

At the global level, market participants will be closely watching US economic data such as US durable goods data and US core PCE price data on July 25 and 26 respectively.

Last week, the Sensex closed at 80,604, gaining 85 points or 0.10 percent, and the Nifty closed at 24,530, gaining marginally 28 points or 0.11 percent.

Foreign institutional investors (FIIs) this week expanded their purchases and bought shares worth Rs 10,946 crore, while domestic institutional investors (DIIs) sold shares worth Rs 4,226 crore.

Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said the Nifty index has formed a shooting star on the weekly charts, indicating a possible reversal of the recent uptrend after hitting an all-time high of 24854.80.

“The immediate support levels are 24,150 and then 23,750. A break below these levels could signal continued bearish momentum and possible further declines. On the upside, the resistance zone lies between 24,850 and 24,900,” he said.

According to Vinod Nair, head of research at Geojit Financial Services, investors expect pro-industry and populist measures to be taken but will be cautious on finances.

“If the budget meets expectations, it will bring more stability to the market,” he said.

–IANS

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor.

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