Market outlook will depend mostly on RBI MPC meet, IIP data, and the Q2 earnings season will kick off with key companies like TCS, IREDA Tata Elxsi, and DMart among others.
This will shift the focus of the market on the larger side to the Monetary Policy Committee of RBI, scheduled to be held between 7 and 9 October, and the outcome shall be announced on 9 October Wednesday.
According to market experts, this forecast indicates, "the Reserve Bank of India (RBI) is likely to hold the benchmark repo rate steady in its next policy review that will also be the ninth successive meeting, last seen since August 2024. Market expectations of such a move are seen in the direction of supporting economic growth while bringing inflation closer to its medium-term target of 4 per cent.".
Several other factors like activities of Foreign Institutional Investors (FIIs), US FOMC Meeting Minutes, and crude oil prices will also drive the market next week.
As has been reported last week the market witnessed a quick fall and was left broken in its streak of three weeks of win. Nifty as well as Sensex witnessed almost a dip of 4.50 percent wherein the former closed at 25,014.60 and the latter at 81,688.45.
The largest driver behind the selloff was the diversion of foreign funds towards China after the nation's central bank decided to implement considerable monetary stimulus, bringing down the reserve requirement ratio by 0.50 per cent.
Equity sale by FIIs and purchase by DIIs stood at Rs 40,511 crore and Rs 33,075 crore, respectively.
Palka Arora Chopra, Director, Master Capital Services said, "Nifty has formed a strong bearish candle on the weekly chart showing intense selling pressure at higher levels. This week the NSE benchmark broke the key Fibonacci support at 25,100, closed in the red, and the next critical support is at 24,700. A break below this could see further declines toward 24,400.".
Pravesh Gour, technical analyst at Swastika Investmart opines, "Any bounce will be resisted around the Bank Nifty 100DMA at 51,100 and then it may move towards the 50,000-49,500 range, which coincides with the 200-DMA. On the upside, in case of a pullback, 52,500 and 53,300 levels would be important levels."
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