Positive Signals for Stock Markets

Indian equity markets are expected to maintain an underlying positive trend, according to analysts. Strong June-quarter earnings, softer crude oil prices, a stable rupee and continued buying by foreign investors could support market sentiment. However, investors will need to closely monitor developments surrounding the West Asia conflict and other global cues. The newly introduced auction-based price discovery mechanism (CAS) for stocks in derivatives trading will also be watched closely. Technically, the 24,750-24,780 zone is seen as a crucial resistance for the Nifty 50. A sustained move above 24,780 could open the way towards 24,900 and subsequently 25,050. On the downside, immediate support is expected around 24,500-24,480.

Among sectors, the auto index could extend its gains, with support seen at 28,600-28,900 and resistance at 30,600-31,000. The Nifty Metal index may witness further upside, with Lloyds Metals and Energy’s results likely to be closely tracked. Telecom stocks may remain stable, while Vodafone Idea’s results and management commentary on its revival plan could influence sentiment. Some FMCG stocks may remain subdued due to weak earnings, although companies that reported strong results could remain resilient. Banking and pharma stocks may continue to perform positively, while IT stocks could remain volatile amid global AI developments, despite potential value buying after recent declines. Cement, oil and gas, and capital goods stocks may trade within a range. Rainfall, crude oil prices and global developments are expected to remain key market triggers throughout the week.