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Mumbai (Maharashtra) (India), August 10 (ANI): Market analysts say the stock market will be looking at global events like international market performance, US recession predictions and domestic macroeconomic indicators like IIP, CPI and WPI inflation data in the coming week.

“Looking ahead, we will focus on the performance of global markets, especially the US, as a guide for direction,” said Ajit Mishra, vice president, research, Religare Broking Ltd.

“Domestic attention will also be focused on the end of the earnings season and key macroeconomic indicators such as IIP, CPI and WPI inflation data,” he added.

Expressing confidence in the Indian markets, Vinnaayak Mehta, Founder and Managing Partner, The Infinity Group, said, “While global factors may cause short-term volatility, the resilience of the Indian market offers promising prospects for patient investors focused on long-term growth.”

Stock markets experienced increased volatility and closed lower for a second consecutive week on August 9.

Indian markets witnessed one of the worst declines at the close of trade on Monday, with both the Nifty and Sensex indices posting heavy losses in opening trade. The markets followed the global carnage on August 5 but rebounded in the subsequent trading days.

Fears of a potential recession in the US and rising tensions in the Middle East triggered a sharp decline on Monday, which was marked by a downward gap opening on indices.

The market maintained a cautious tone in the subsequent sessions, though with some stability in the global markets halting the further decline. Ultimately, both the benchmark indices, Nifty and Sensex, fell by around one and a half percent each to settle at 24,367.50 and 79,705.91 respectively at the close on Friday.

Most sectors, except defensive sectors such as pharmaceuticals and FMCG, faced selling pressure with metals, energy and financials being the biggest losers.

This trend also affected the indices of medium and small companies, which recorded declines of 1–2 percent.

Market analysts say the Nifty index is consolidating within its short-term moving averages (20 DEMA and 50 DEMA) in the range of 24,000-24,400 and a decisive breakout from this zone is likely to determine the next directional move.

“If a breakout occurs, the index could rally towards 24,700 to fill the gap on the daily chart. On the downside, key support lies between 23,450-23,700 in case of further declines,” Mishra added.

However, experts suggest that investors should manage positions on both sides carefully, with particular emphasis on managing overnight risk, given the differing trends across sectors.

In the current market scenario, foreign portfolio investors (FPIs) became net sellers in the Indian equity market, selling shares worth Rs 12,404.73 crore during the week of August 5-9.

According to data from the National Securities Depository of India (NSDL), foreign investors sold stocks every day of the week except Friday, when they bought shares worth Rs 521 crore.

Interestingly, while foreign investors were net sellers of Indian stocks, domestic institutional investors remained net buyers, largely compensating for the outflows by foreign investors. As per NSE data, the gross net buying by domestic investors (DII) in August stood at Rs 23,500.01 crore. (ANI)

This report is generated automatically by ANI news service. ThePrint is not responsible for its content.