India's key equity indices are expected to resume their northward trajectory during the upcoming week, experts opined.
Accordingly, build-up of investors' hopes on faster economic recovery as well as easing Covid restrictions are likely to trigger this trend.
Besides, the expected growth in industrial production will also support this trajectory.
However, rotational profit-booking could induce some volatility during the week ahead.
"Nifty could rise some more in the coming week in the absence of any major negatives emerging," said HDFC Securities' Retail Research Head Deepak Jasani.
"However, the broader markets could continue to see rotational profit-taking. 15962-16146 could be the support band for the Nifty in the coming week while 16337-16349 could act as a resistance."
Last week, India's benchmark indices ended 3 per cent higher on the back of resumption of buying in banking stocks and easing of regulatory tensions in China led to this upmove.
"We expect the positive momentum in the market to continue on account of strong domestic economy data, impressive quarterly results and unlocking in various states," said Motilal Oswal Financial Services' Retail Research Head Siddhartha Khemka.
"Next week market would react to US and China inflation data along with UK GDP data. Lot of stock specific action would continue as more results get declared."
Apart from the macro-economic data points, the week ahead will be influenced by Q1FY22 corporate earnings.
Notably, companies like Indian Hotels, Coal India, IFCI, Power Grid, Max Healthcare, Lupin, Motherson Sumi , India Cements, IDFC, and Hero MotoCorp are expected to announce their Q1FY22 earning results next week.
"In the coming week, key economic data releases to watch out for include inflation data for July and industrial production data for June," said Geojit Financial Services' Research Head Vinod Nair.
"CPI inflation level for July is expected to remain high, though lower than June's level of 6.26 per cent."
The Central Statistics Office (CSO) is slated to release the macro-economic data points of Index of Industrial Production (IIP) and Consumer Price Index (CPI) on August 12.
(Rohit Vaid can be contacted at rohit.v@ians.in)
--IANS
rv/sn/in
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU