Stock Market Next Week: Global cues, FII flow, currency and crude movement to dictate Indian indices, say analysts

Stock Market Next Week: In absence of any major event or triggers, the Indian markets will be mainly directed by global markets as cues, as well as the trend of foreign flows will be on radar in the next week analysts said.

Given the absence of major domestic events, Indian market sentiment will be influenced by its global counterparts to determine its movement, Apurva Sheth, Head of Market Perspectives, Samco Securities said in her expectations from the market next week.

She added that investors around the world will be keeping a close eye on China's inflation figures, while other important factors that may influence the market include the volatility of oil prices and the USDINR. Investors should pay attention to stock-specific events, Sheth advised.

The domestic markets consolidated further and ended almost unchanged amid volatility, in continuation of the prevailing corrective phase, Ajit Mishra, VP - Research, Religare Broking said while explaining how markets traded this week.

He added that after the sharp fall in the first session, the benchmark not only recovered losses in the following days but also managed to hold at higher levels despite weak global sentiment

The benchmark indices, Nifty and Sensex, settled at 17,539.4 and 58,803.3 levels respectively, while a mixed trend on the sectoral front and buoyancy in the broader markets kept the participants busy.

According to Mishra, “Markets have been showing tremendous resilience amid tough global conditions however it would be hard to hold if the situation deteriorates further. We’re eyeing 17,000 as a major support in Nifty while 17,800 would continue to act as a hurdle.”

Banking and financial pack have played a critical role in capping the damage so far and their performance would remain the key ahead also as heavyweights like Reliance and IT majors are not showing any sign of respite, the analyst at Religare Broking further stated.

Mishra recommended restricting positions to select sectors and stocks which are outperforming the benchmark.

Technically, the Nifty50 index began the week with a large gap down, following negative cues from international indices, but regained most of its losses. It closed slightly negative/unchanged. After a sharp rise from 15,200 to 18,000, the benchmark index is now consolidating, Sheth said in her note.

At the moment, the level of 17,150 is likely to serve as a key support zone, the analyst at Samco Securities stated, recommending that traders maintain a bullish bias and buy on dips as long as the mentioned support is protected.