Will Nifty Hold 24,850 or Rebound? Experts Analyze Next Week’s Key Market Triggers

Fast summary

• Market Performance: Indian stock markets struggled last week amidst weak global cues and muted foreign investor activity. Nifty fell by 1.22%,Sensex dropped 925 points,while FMCG gained 2.20%. Defense and IT sectors saw steep corrections of 4.50% and 3.90%, respectively.
• Global Divergence: Indian markets are underperforming compared to global indices, reflecting cautious sentiment and consolidation.
• Key Triggers:

– Q1 earnings season is being closely monitored for margin trends, demand visibility, and forward guidance.
– Global tariff developments could influence risk sentiment significantly.

• Nifty Technicals:

– Broke below its 20-day EMA last week with bearish crossover signals in RSI and MACD.
– Support levels: between 24,850-24,900; Resistance: At 25,300-25,350 for reversal attempts.

• Bank Nifty Outlook:

– Narrow range movement near its tightest weekly spread since August 2024; momentum indicators flat-reflecting market indecision.- Support at 56,200-56,300; Resistance at 57,100-57,200 required for trend action.

• Sectoral Trends:

– Weakness persists in IT (following TCS results) as major stocks trade below key averages without positive signs yet emerging.
– Defence index continues to weaken after a breakdown from consolidation range; Oil & Gas also sluggish while PSU & Tourism indices show resilience with bullish patterns forming in some stocks like EID Parry & Medanta.For further data read More.

Indian Opinion Analysis

The cautious behavior of the stock market underscores broader uncertainties both domestically (Q1 earnings) and globally (tariff tensions). The mixed performance across sectors reflects this dual pressure – resilient pockets like FMCG contrast starkly against vulnerable areas such as Defence or IT. Technical signals paint an increasingly bearish outlook unless supportive catalysts arise from either corporate margins or clarity on trade issues.

While subdued FII activity can restrict liquidity inflows necesary for breakout performance in indices like nifty or Bank Nifty this week will test support/resistance lines pivotal to determining directionality. For individual investors or stakeholders focused on equities now could perhaps shift focus toward defensively positioned sectors (like tourism/framework strengthening corporates amid consolidation).

Moving cautiously seems prudent aligning themes yet clear overpower elements pricing-major equilibrium Realigning might stabilize longer break Expansion