Indian stock market: Indian equity markets wrapped up a volatile week on a positive note, ending a two-week losing streak as improving global sentiment and RBI measures aimed at boosting foreign currency inflows supported investor confidence.
As a result, benchmark indices finished the week in the green, with the Nifty 50 rising 1.10% to close at 23,622.90, while the Sensex advanced 1.73% to settle at 75,527.95.
Stock market outlook for next week
Ponmudi R, CEO – Enrich Money, believes that market investors are expected to closely track developments related to the proposed US–Iran agreement in the coming week. Although reports suggest meaningful progress has been achieved and a broad understanding has been reached among major stakeholders, investors are likely to await a formal announcement and signing of the pact before factoring in a lasting improvement in the geopolitical landscape.
Ponmudi further noted that crude oil prices will continue to play a pivotal role in shaping market sentiment. Sustained stability or a further decline in oil prices could bolster risk appetite by alleviating concerns over inflationary pressures, import bills, and India’s overall macroeconomic stability. On the other hand, any disruption to diplomatic negotiations or a resurgence of tensions in the Middle East could reignite market volatility and push energy prices higher.
“Institutional investment flows will remain another key area of focus. Robust domestic liquidity continues to support equity markets, but a slowdown in foreign institutional investor (FII) selling—or a return to net inflows—would provide a strong boost to sentiment and support a more durable market recovery. Investors will also keep an eye on global bond yields, currency trends, and broader international market movements for clues on risk appetite and the future direction of capital flows,” he added.
What should be your market trading strategy next week?
On the market trading strategy ahead for the week, Ajit Mishra – SVP, Research, Religare Broking, said that investors should continue to focus on fundamentally strong companies with healthy balance sheets, robust earnings visibility, and leadership positions within their respective sectors. Preference may remain towards quality large-cap financials and businesses that stand to benefit from improving liquidity conditions and supportive policy measures.
“Traders should avoid excessive leverage and maintain disciplined risk management practices. Given the mixed participation beneath the index level, stock selection is likely to remain more important than broad market direction in the near term,” Mishra said.
Key technical levels to watch out for next week –
Sensex
Nifty 50
On the Nifty 50’s technical outlook, Hitesh Tailor, Research Analyst at Choice Broking, said that on the upside, immediate resistance levels are placed at 23,950 and 24,100. On the downside, support is seen at 23,200 and 23,000.
“A decisive move above the 24,100 zone could trigger fresh buying momentum and improve the broader market structure, while a breakdown below 23,000 may invite renewed selling pressure. Considering the current technical setup, traders are advised to maintain a stock-specific approach while adhering to strict risk management strategies amid prevailing market volatility,” Tailor said.
Bank Nifty
Meanwhile, on the Bank Nifty’s outlook, Tailor added that the index has given a decisive breakout from its recent sideways consolidation range on the weekly chart, indicating a revival of bullish momentum.
“The index has also reclaimed its 20-weekand 50-week EMA levels, which may now act as important support zones on declines. Weekly RSI has improved to 53.00 and moved above the neutral mark, suggesting strengthening momentum and improving sentiment. Immediate support is placed in the 55,500–56,000 zone, while resistance is seen at 57,500 and 58,000. Sustaining above the breakout zone could keep the positive momentum intact in the coming weeks,” Tailor said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
