New Delhi: Market outlook for next week will depend on RBI MPC meeting, IIP data and Q2 earnings season will kick off with key companies like TCS, IREDA Tata Elxsi and DMart among others driving stock specific moves .
The focus of the broader market will be on the RBI’s Monetary Policy Committee (MPC), which is scheduled to meet from October 7 to 9, with the results to be announced on Wednesday, October 9.
According to market experts, “The Reserve Bank of India (RBI) is expected to keep the benchmark repo rate unchanged in its upcoming policy review after keeping it at 6.5 percent for the ninth consecutive meeting in August 2024. This is in line with the market expectations as the central bank aims to bring inflation closer to its medium-term target of 4 percent while supporting economic growth.
Several other factors such as Foreign Institutional Investor (FII) activities, US FOMC meeting minutes and crude oil prices will also boost the market in the coming week.
In the previous week, the market suffered a sharp decline and snapped its three-week winning streak. Nifty and Sensex tumbled nearly 4.50% to close the week at 25,014.60 and 81,688.45 respectively.
The main driver behind the sell-off was the flight of foreign funds to China after the country’s central bank introduced significant monetary stimulus, cutting the reserve requirement ratio (RRR) by 0.50 percent.
FIIs sold shares worth Rs 40,511 crore, while domestic institutional investors (DIIs) bought shares worth Rs 33,075 crore.
Palka Arora Chopra, Director, Master Capital Services said, “Nifty formed a strong bear candle on the weekly chart, signaling strong selling pressure at higher levels. Last week the NSE benchmark broke the key Fibonacci support at 25,100 and closed negative, the next critical support is 24,700. A break below this could lead to further declines towards 24,400.”
Pravesh Gur, senior technical analyst at Swastika Investmart said, “Bank Nifty’s 100-day moving average (DMA) at 51,100 serves as an immediate support level, with the 50,000-49,500 range in line with the 200- The DMA acts as the next support zone. On the upside, 52,500 and 53,300 will be key resistance levels during any pullback.”
