Investors are set to monitor global events like tariff changes in the US and important local data such as GDP figures and the monthly F&O expiry to steer market trends in the upcoming week. Following a significant drop of over 1% in the previous session, the Indian stock market rebounded strongly on Friday. The 30-share Sensex surged by 317 points, or 0.38%, to close at 82,814.71, while the broader Nifty also saw gains, rising by 117 points, or 0.46%, to settle at 25,571.25.
Analysts have highlighted key levels to watch, with 25,800 as the immediate resistance, followed by 26,000 and 26,200, while crucial supports are at 25,300 and 25,100. The market expert mentioned that a clear break below 25,000 could intensify downward momentum and hasten corrective pressures. In the wider market scenario, the BSE 150 MidCap Index climbed by 0.44%, whereas the BSE 250 SmallCap Index dipped by 0.19%.
Moving forward, the focus will remain on global trade dynamics, particularly on the impact of US tariff decisions and any legal or policy changes affecting global trade patterns. Any significant developments in this area could influence global markets and subsequently impact investor sentiment in India. Domestically, attention will shift to vital economic indicators, including the upcoming quarterly GDP estimates under the new series scheduled for release on February 27 by the Ministry of Statistics & Programme Implementation.
Apart from GDP data, market participants will keep an eye on government budget figures, foreign exchange reserves, and year-on-year infrastructure output data for fresh insights into the economic landscape. Market volatility is expected to rise due to the monthly derivatives expiry, with analysts foreseeing heightened fluctuations as traders adjust their positions ahead of the February F&O expiry on February 24.
Recent data from the National Securities Depository Limited indicates an improvement in foreign investor activity, with foreign portfolio investors turning net buyers in nine out of the last sixteen trading sessions until February 20. Total FPI investments through exchanges reached Rs 14,177.66 crore during this period, with an additional Rs 2,733.89 crore invested by FPIs in the primary market, bringing the total investment for February to Rs 16,911.55 crore. With global trade uncertainties, domestic economic data, and derivatives expiry on the horizon, analysts anticipate market volatility to persist, though specific stock movements are expected to drive action in the upcoming week.
