Mumbai, February 8: The upcoming week is set to be crucial for the stock market, with several significant factors emerging from both domestic and global fronts. Key highlights include inflation data linked to the new base year (2024) and updates regarding the India-U.S. trade deal.
Investors in India will closely monitor the retail inflation figures scheduled for release on February 12, which will be published under the new base year. Following this, wholesale inflation (WPI) and foreign exchange reserves data will be released on February 13, providing insights into inflation trends and the country’s external economic situation.
Analysts indicate that additional information regarding the interim trade deal framework between India and the U.S. will also be critical for the market.
Experts have noted that several companies will announce their quarterly results during this period, which could lead to significant movements in specific stocks.
Global investors are expected to keep an eye on economic data from the U.S. and the recent performance of the Nasdaq Composite Index, which has faced declines.
Moreover, ongoing discussions between the U.S. and Iran, along with other geopolitical events, will remain significant for the market.
Market experts warn that any disruptions in the U.S.-Iran negotiations could lead to increased volatility in global financial and commodity markets, raising concerns about potential military interventions and major conflicts in the Middle East.
Ponmudi R, CEO of Enrich Money, stated that the Indian rupee has rebounded from historic lows following the announcement of the India-U.S. trade deal. The activities of foreign portfolio investors (FPIs) will play a pivotal role in determining the market’s direction in the coming days.
He added that the impacts of the Union Budget 2026 and the Reserve Bank of India’s monetary policy decisions have already been factored into the market. Consequently, the stock market has entered a consolidation phase, where investors will focus on the implementation of plans, capital expenditure, and the pace of actual spending.
Analysts suggest that the current market sentiment remains cautious yet positive. The market’s future will depend on global signals, capital flows, and the political situation in the Middle East.
Last week, the Nifty Index experienced considerable fluctuations, reaching a high of 26,341 and a low of 24,679. By the end of the week, the Nifty closed at 25,693.70, marking a robust gain of 868 points.
On the weekly chart, the Nifty formed a strong bullish candlestick and closed above the 20-week EMA, indicating a positive medium-term market outlook.
Akash Shah, a technical analyst at Choice Broking, mentioned that for the Nifty, resistance levels are set at 25,800, 26,000, and 26,200. Support levels are at 25,500 and 25,200. If the Nifty slips below 25,100, further declines could occur.