The Indian stock market faced another tough day on Friday, marking the eighth session of continuous drops. Stocks in banks, automobiles, and everyday consumer goods took the biggest hits. The Nifty index finished at 22,929.25, down 102.15 points or 0.44%.
Jatin Gedia, a technical research analyst at Mirae Asset Sharekhan, believes the Nifty index is likely to keep dropping. He pointed out that it has tested a low point of 22,800 on the charts three times in the last month. Without a change in momentum, he forecasts it could fall to a range of 22,670 to 22,600 in the coming week. On the higher end, significant resistance lies between 23,000 and 23,100.
Here are some important things to pay attention to next week:
1. Trump’s Tariff Plans: Although Trump’s new tariff on imports isn’t starting right away, it still worries investors. Nilesh Jain from Centrum Broking noted that this uncertainty likely contributed to the market’s decline on Friday.
2. US Federal Reserve Meeting Minutes: The minutes from the U.S. Federal Reserve’s meeting on January 28-29 will be released on Wednesday. Their viewpoint is important because inflation rose above 3%, the highest since June 2024, and they are cautious about cutting interest rates.
3. US Market Signals: US stock markets ended mixed, which could influence Indian trading. The S&P 500 was down slightly, while the tech-heavy Nasdaq saw some gains.
4. FII and DII Trading: Foreign Institutional Investors (FIIs) sold Indian stocks worth over Rs 4,294 crore on Friday, which contributed to market losses.
5. Technical Trends: Osho Krishnan from Angel One pointed out that the market is showing bearish signs. If it falls below 22,800-22,700, it could drop even more, hitting levels like 22,500-22,400. Meanwhile, strong resistance is seen at around 23,300-23,350.
6. Upcoming IPOs: This week, three main Initial Public Offerings (IPOs) are scheduled, including Ajax Engineering on February 17 and Hexaware Technologies on February 19.
7. Rupee Strength: The Indian rupee gained 12 paise against the US dollar, settling at 86.81, but ongoing foreign investor selling limited its rise.
8. Crude Oil Prices: Oil prices impact inflation and global market rates. Currently, WTI crude oil is $70.57, down 1.01%.
9. Corporate Actions: February 17 is significant for several companies as they announce interim dividends.
(Disclaimer: This news analysis reflects opinions from various experts and does not represent the views of Thellv.news)
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