Stock Market Outlook for Next Week: Q3 Earnings, India-US Trade Developments and Global Cues to Drive Volatility

Mumbai: Indian equity markets are expected to remain volatile in the coming week as investors closely monitor December quarter (Q3) corporate earnings, developments in India-US trade relations, and key global economic indicators from the United States.

The benchmark indices — Sensex and Nifty — ended a two-session losing streak on Friday (January 16), supported by strong buying in information technology and banking stocks. The Sensex gained 188 points, or 0.23 per cent, to settle at 83,570.35, while the Nifty advanced 29 points, or 0.11 per cent, to close at 25,694.35.

On the technical front, analysts noted that the Nifty faces immediate resistance at 25,875, followed by higher hurdles at 26,000 and 26,100. On the downside, key support levels are seen at 25,600 and 25,450. A decisive break below 25,300 could trigger further corrective pressure, experts cautioned.

Given the heightened volatility, market participants have been advised to adopt a cautious trading approach with strict stop-loss measures.

Market sentiment improved largely due to a sharp rally in IT stocks, with heavyweights such as Infosys, TCS, and Tech Mahindra leading the gains.

Looking ahead, corporate earnings will remain a key market driver as the results season moves into its second week. Several large-cap and mid-cap companies across sectors are scheduled to announce their Q3 financial performance.

Developments surrounding India-US trade relations are another important factor likely to influence investor sentiment in the near term.

Global cues will also remain in focus, with investors tracking crucial US economic data, including GDP growth, inflation readings, jobless claims, and purchasing managers’ index (PMI) figures.

Additionally, movements in gold and silver prices could impact equity markets. Precious metals have recently come under pressure amid a stronger US dollar and easing geopolitical tensions. Market experts believe that if bullion prices continue to soften, funds may rotate from gold and silver into equities, potentially offering some support to stock markets.

With inputs from IANS