This week there was a decline of 2 percent in Nifty. The main reason for which was the decline in IT stocks. A lot of selling was also seen in auto and consumer stocks. When the domestic markets reopen on Monday, many important events taking place this week are likely to have an impact on the market mood. On Friday, this index of 50 stocks fell 275 points, or 1.14 percent, and closed at 23,898.
Rupak Dey of LKP Securities said in the ET report that there has been a lot of volatility in the markets in the last three sessions, and due to the increasing tension between US-Iran, there is pressure on the index. From a technical perspective, he noted that the index failed to maintain its gains after facing resistance around the 100-day EMA on the daily chart, triggering another selloff and falling below the 24,000 level.
Now the overall trend looks weak, and Nifty may move towards 23,500. However, he also said that the level of 24,200 remains a major hurdle, and a move above this level could help stabilize the market sentiment. Let us also tell you what are the reasons due to which the stock market may be affected in the future.
Stock market may be affected due to these reasons
Fed Reserve policy meeting
Global markets will closely monitor the US Federal Reserve’s policy meeting, which starts on Tuesday, April 28. Its results will be declared on Wednesday, April 29. It is expected that the Central Bank will maintain the interest rates at 3.50-3.75 percent only.
fourth quarter results
More than 200 companies listed on BSE are going to declare their fourth quarter results this week. Important Nifty stocks to keep a special eye on include Coal India, UltraTech Cement, Eternal, Maruti Suzuki India, Bajaj Finance, Adani Port & SEZ, Bajaj Finserv, HUL, and Kotak Mahindra Bank. Among the stocks outside Nifty that will be keeping an eye on, the results of AU Small Finance Bank, Bajaj Housing Bank, Bandhan Bank, REC, GRSE, Adani Power, Motilal Oswal Financial Services, Vedanta, Vari Energy, ACC, Central Bank of India, Avenue Supermart are about to come.
Iran-Israel dispute
The ongoing talks between Iran and the US regarding ceasefire have now come to a standstill. Talks scheduled for the weekend failed to take place as Iran signaled its officials did not plan to negotiate with the United States on ending the conflict that has already killed thousands and roiled global markets. The war, which began following joint US and Israeli strikes targeting Iran’s top leadership on February 27, has seen ups and downs in intensity. Although the hostility has reduced somewhat, both sides are still far away from any solution. The first round of talks held in Islamabad also failed to make any progress. The direction of these talks is likely to be a major factor influencing global market sentiment.
American stock market
Amidst continuing geopolitical concerns, Indian stock markets will also take cues from Wall Street. US benchmark indices witnessed a mixed trend on Friday as investors remained cautious ahead of the Fed’s decision. The Dow Jones Industrial Average fell 127.88 points, or 0.16%, to 49,230.71. The S&P 500 rose 0.80% (56.68 points) to 7,165.08, while the tech-heavy Nasdaq Composite added 398.09 points, or 1.63 percent, to 24,836.60.
crude oil prices
Fluctuations in global crude oil prices will remain a major factor for domestic markets. On Friday, US WTI crude futures closed at $94.88 per barrel, down $0.97 or 1.01 per cent, while Brent crude closed at $105.33 per barrel, up 0.77 per cent or $0.81.
FII/DII activities
Foreign institutional investors (FIIs) continued to sell on a large scale during the week, selling domestic shares worth Rs 17,140 crore in the five sessions ended on Friday. The total outflow in April has now increased to Rs 43,967 crore, taking the total outflow so far for 2026 to Rs 1,75,089 crore. On Friday, FIIs sold shares worth Rs 8,827.87 crore, while domestic institutional investors (DIIs) were net buyers worth Rs 4,700.71 crore.
technical signals
Analyzing the charts, Ajit Mishra, Senior Vice President Research, Religare Broking, said the index has slipped below its key support level of 23,900 (20-DEMA), indicating that the short-term trend has now turned to the downside. Immediate support is seen around 23,500. On the upside, the zone of 24,200-24,500 can act as a strong resistance band. Mishra further said that any bounce towards these levels could face selling pressure unless it is supported by softening crude oil prices and better global cues.
rupee vs dollar
The movement of the rupee against the US dollar will be closely monitored. Last week, the Indian rupee weakened in all five trading sessions, registering its biggest weekly decline since September 2022. The decline was due to the weakening of the US-Iran ceasefire and concerns about possible disruptions in energy supplies, which led to a fresh rise in oil prices. On Friday, the rupee closed at 94.2475, which shows a decline of 1.4 percent this week. Regulatory steps taken by the Reserve Bank of India and optimism over the possibility of easing of tensions in the Middle East had supported the currency for some time. However, this relief did not last long, as oil prices started moving upward again amid changing expectations regarding peace talks.
Stocks on Watchlist
Everyone is likely to keep an eye on metal major Vedanta as the ex-date and record date of its demerger are falling on April 30 and May 1 respectively. Meanwhile, Vedanta’s subsidiary Hindustan Zinc (HZL) has set April 30 as the record date to determine the eligibility of shareholders for its dividend of Rs 11 per share.
