Stock Market Trends: 5 Key Factors for Next Week

Aakhir Tak – In Shorts

1. Stock market volatility persisted this week due to domestic and global factors.
2. Key economic data from China, the US, Japan, and the UK will shape next week’s trends.
3. The Federal Reserve’s interest rate decision on January 30 is a major event for investors.
4. FIIs recorded ₹69,000 crore net sales, while DIIs provided ₹17,577 crore inflows.
5. Corporate earnings remain critical, with potential to influence market momentum.

Aakhir Tak – In Depth

Stock Market This Week

Indian markets remained under pressure, marking the third consecutive week of declines. The Nifty fell by 0.48%, closing below key support levels, including the 200-day EMA. While FIIs continued net outflows of ₹69,000 crore, DIIs offset some impact by investing ₹17,577 crore, cushioning the decline.

Key Global Data Next Week

The upcoming week presents critical global data that may impact market trends:

• China: The NBS Composite PMI (January) will reveal manufacturing and non-manufacturing sector health.
• US: Durable goods orders (December) and the Q4 GDP growth rate (forecast: 3.1%) are key releases.
• Japan and UK: Consumer confidence data from Japan and housing price trends in the UK will also shape investor sentiment.

Market Indicators to Watch

The Nifty index faces resistance at 23,350–23,450. A sustained breach below 22,600 could lead to sharper declines, while a recovery above 23,450 could change the momentum. Similarly, Bank Nifty resistance lies at 48,900–49,000, with further declines expected if breached.

Aakhir Tak – Key Takeaways to Remember

• FIIs are net sellers, creating market pressure; DIIs continue supporting domestic equities.
• Upcoming global data and Fed rate decisions will be pivotal for market direction.
• Investors should adopt a cautious approach with ‘sell on rise’ as a strategy.

Aakhir Tak Editor-in-Chief

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