NewDelhi: Stock market investors may stay careful next week as several important factors could affect Dalal Street. Rising tensions between the US and Iran, higher crude oil prices, March quarter company results, foreign investor selling, and weakness in the rupee are expected to keep the market under pressure.
On Friday, both Sensex and Nifty closed lower for the second straight session. Banking and financial stocks saw heavy selling as investors became nervous due to growing global tensions.
The BSE Sensex fell by 516 points, or 0.66 per cent, and ended at 77,328.19. The NSE Nifty also dropped 151 points, or 0.62 per cent, to close at 24,176.15.
Market experts say Nifty may face resistance near the 24,500 and 24,600 levels. This means the market may find it difficult to move above these levels. On the lower side, support is seen at 24,000 and 23,800. If Nifty falls below 23,800, selling pressure may increase further.
Investors will keep a close watch on the US-Iran situation, especially after tensions increased around the Strait of Hormuz. This area is very important because a large part of the world’s oil supply passes through it.
Because of these tensions, global crude oil prices moved sharply higher. Although prices later came down slightly as hopes of easing tensions grew, the risk of supply problems is still keeping investors worried.
Higher crude oil prices are important for India because the country imports most of its oil needs. If oil prices stay high, it can increase inflation and put pressure on both companies and consumers.
Another big focus for next week will be the earnings season for the March quarter. More than 400 companies are expected to report their results over the next few days. Investors will scrutinise these results for an idea about business growth, profit margins and future demand trends.
Management comments during earnings announcements will also be important, as they may give signals about the economy and company performance in the months ahead.
For Bank Nifty, experts say immediate support is in the 54,600 to 54,200 range if selling increases again. On the upside, 56,400 is seen as the first resistance level, while 56,800 is the next important level where selling may appear.
Experts are advising traders to stay cautious and follow strict stop-loss strategies because market volatility may remain high.
Next week may prove to be an important one for the Indian stock markets as there are global tensions, rising oil prices and key corporate results lined up. Investors are likely to stay cautious and refrain from taking big bets until there is more clarity.
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