Q3 earnings, inflation data and US tariff uncertainty likely to drive Sensex, Nifty next week

Indian equity markets are likely to experience heightened volatility in the upcoming week as traders weigh multiple domestic and international factors. Key events include the commencement of corporate earnings season for the October-December quarter, upcoming inflation data releases, and ongoing trade policy developments in the United States.

Market benchmarks extended losses for five consecutive sessions last week, closing lower amid growing investor caution ahead of quarterly results and continued withdrawal of foreign investments.

Market participants will scrutinize corporate performance data and economic indicators to gauge the economy’s trajectory and potential implications for monetary policy decisions.

The earnings season will begin with major information technology firms reporting results, including Tata Consultancy Services, Infosys, Wipro, HCL Technologies, and Tech Mahindra.

Investors will also analyze several macroeconomic indicators scheduled for release, including Consumer Price Index figures, Wholesale Price Index data, trade balance statistics, and foreign reserve updates.

International developments remain critical for market direction, particularly regarding U.S. trade regulations. The U.S. Supreme Court’s upcoming decisions on trade-related cases could significantly impact global market sentiment.

“Resistance levels are positioned at 25,800, followed by 25,940 and 26,000, while supports appear at 25,600 and 25,450. A sustained breach below 25,300 could accelerate downward momentum,” noted a market strategist.

“Technical charts show Nifty closing firmly below the critical 25,800 threshold, signaling bearish control following a breakdown in a key resistance area,” added another analyst.

(With inputs from IANS)