Macro data to drive domestic mkt this week

The domestic stock market is expected to remain sideways to a consolidating phase as the equity indices show mild selling pressure at a higher level in the weekly chart. The coming week will be significant, with multiple important macroeconomic data. On the domestic front, the focus will be on India’s CPI and WPI inflation figures, which are expected to shed light on the inflation trend and future policy direction.

This week, the Nifty index closed the week at 25,492.30, marking a 0.89 per cent decline from the previous week’s close. The decline took place due to ongoing selling by the foreign institutional investors (FIIs) despite indications of a strengthening domestic economy.

“On the earnings front, quarterly results from prominent companies such as ONGC, Bajaj Finserv, Asian Paints, Tata Steel and Oil India will be closely tracked for sectoral cues,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

Fading expectations of a Fed rate cut also contributed to cautious investor sentiment amid mixed global cues, and sectoral weakness in IT and metals led to the decline

According to analysts, a bearish-bodied candle with a lower wick and a small upper wick was formed this week, indicating selling pressure at higher levels.

“The price action reflects a sideways to consolidation phase, as the Nifty index failed to hold its higher levels and ended the week below the 25,500 mark,” analysts said.

This setup suggests the possibility of continued consolidation or sideways movement in the near term, said Hardik Matalia of Choice Broking. The India VIX rose by 3.33 per cent during the week to close at 12.5575, indicating a slight uptick in market volatility.

“In the derivatives segment, the maximum Call open interest (OI) is concentrated at the 25,600–25,700 strike levels, suggesting strong resistance at higher zones. On the downside, the maximum Put OI is seen at the 25,400–25,300 strike levels, highlighting key support areas,” the analyst noted.

Meanwhile, the Bank Nifty index closed the week at 57,876.80, up 0.17 per cent from the previous week’s close. On the weekly chart, the index shows signs of indecision, reflecting a tussle between buyers and sellers.

“The index ended the week above the 57,800 mark, indicating stability, but a lack of clear direction. Overall, the setup suggests a sideways to consolidation phase until a decisive breakout occurs on either side,” the analyst highlighted.