Stock market outlook next week: Q3 results, India-US trade talk, global cues in focus
Mumbai, Jan 18 (IANS/WISHAVWARTA) Indian stock markets are likely to remain volatile in the coming week as investors track the progress of the December quarter earnings season, developments related to India-US trade ties, and key global economic data from the United States.
The benchmark indices, Sensex and Nifty, snapped their two-session losing streak on Friday (January 16), supported by strong buying interest in IT and banking stocks.
The Sensex rose 188 points, or 0.23 per cent, to close at 83,570.35, while the Nifty ended 29 points, or 0.11 per cent, higher at 25,694.35.
Commenting on Nifty technical outlook, experts said that immediate resistance is placed at 25,875, followed by 26,000 and 26,100 levels.
“On the downside, support is seen at 25,600 and 25,450. A breakdown below 25,300 could intensify downside pressure and accelerate corrective moves,” an analyst stated.
Given the prevailing volatility, a cautious approach with strict stop-loss discipline is advised, as per the analyst.
Market sentiment improved mainly due to a sharp rally in IT stocks, with companies like Infosys, TCS and Tech Mahindra leading the gains.
Looking ahead, corporate earnings will be one of the biggest drivers for the market. As the earnings season enters its second week, several large and mid-cap companies from different sectors are scheduled to announce their Q3 results.
Another factor to keep investors on edge is the development around India-US trade relations.
Global cues will also play an important role. Investors will track important US economic data, including GDP growth figures, inflation trends, jobless claims and PMI readings.
In addition, movements in gold and silver prices may affect equity markets. Precious metals have come under pressure due to a strong US dollar and easing geopolitical tensions.
Market experts believe that if gold and silver prices cool further, investors may shift money from bullion to other assets such as equities, providing some support to the stock market.
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