Indian stock market: Markets extended their upward momentum for the third straight week, posting gains of over one percent, supported by ongoing foreign fund inflows and strong corporate earnings.

Following an early rally, the benchmarks moved within a tight range for most of the week but still closed on a positive note. In the end, the Nifty settled at 24,346.70, while the Sensex finished at 80,501.99.

“After outperforming the benchmarks in the previous week, the broader markets ran out of steam and closed mixed for the week, with BSE Midcap gaining 0.4% WoW, while Smallcap index declined 1.3% WoW,” said Weekly Wrap report by SBI Securities.

Key market drivers for next week

Markets closed higher, supported by positive India’s IIP data, as industrial production grew by 3 percent in March and global markets remained stable, aided by ongoing U.S. bilateral trade discussions.

“This was further fueled by foreign institutional investor (FII) movement, those were net buyers for the week, bolstered market sentiment. RBI also expressed optimism over India’s growth prospects and demonstrated remarkable resilience and dynamism,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.

Mishra further said that sector-wise, continued buying seen in the Realty sector that stood out as key driver. Additionally, the auto, IT, pharma, and Energy sectors also posted gains. Conversely, media, metals and fast-moving consumer goods (FMCG) sectors ended the week in the red. Broader markets mirrored the trend, closing flat to marginally lower amid intra-week volatility and swings.

Key events to watch out next week

The coming week is crucial, packed with key domestic and global triggers. With developments regarding tariff and geopolitical tensions with Pakistan will still remain on the radar.

“On the macroeconomic front, investors would be eyeing the HSBC Composite PMI and HSBC Services PMI Final data. While on the global front, Fed Interest Rate Decision is due on 7th May where they would be discussing about the future rate cut path,” Mishra said.

On the corporate earnings front, several prominent companies—including M&M, Coal India, Asian Paints, L&T, Titan, Coforge, One 97 Communication, Pidilite Industries and Dr, Reddy’s Labs—are set to release their quarterly results. Globally, updates related to tariffs and trade will also be watched closely.

“Next week, the 4QFY25 earnings season will pick up pace. The market will also react to the results from the 2 banking heavyweights – SBI and Kotak Mahindra Bank, which were declared on Saturday. Additionally, next week, Apr’25 HSBC Services PMI will also be in focus. In the US, Apr’25 S&P Global Services PMI, Mar’25 Balance of Trade (USD), FOMC interest rate decision and Weekly initial jobless claims will be keenly tracked,” the SBI Securities report said.

Technical outlook for next week

The Nifty continued it’s upwards rally for the third straight week which has been almost a vertical rise, possibility of some consolidation can not be ruled out before the next major directional move.

On the Nifty 50 outlook, Mishra of Religare Broking, said, “Nifty hovered between a range of 24,000 to 24,600 while it will be crucial to hold the 23,800 level downside to maintain its bullish tone; a breach could lead to extended profit-taking, with the next major support near 23,400—where key moving averages such as 20-day, 100-day, and 200-day EMAs still supporting upside. On the flip side, a decisive breakout above 24,400 on the closing basis could re-ignite bullish momentum, potentially propelling the index toward the 24,800 mark.

On the Bank Nifty outlook, he added, “Bank Nifty continues to show consolidation after a vertical rise while supporting relative strength, above key moving averages even after profit booking of the initial rise. While some consolidation may be seen in the banking index, the broader tone remains optimistic. After a sideways move, in case we see further correction near 52,800-53,700 levels, buying interest is expected to emerge with an upside potential toward 55,500–57,000.”

What should be your trading strategy?

Mishra recommended investors to maintain a positive approach with “buy on dips” strategy and a preference for hedged positions in the index.

“Meanwhile, selective stock-picking opportunities continue to emerge with sector specific preferences. Hence, the focus should be on identifying stocks with favorable risk-reward setups,” he added.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.