Stock market outlook week ahead: Key factors set to drive market action on Monday - Here's all you need to know

The Indian equity markets extended their winning streak on Friday, buoyed by foreign inflows, easing US bond yields, a stronger rupee, and festive optimism. Investors now head into a holiday-shortened week keeping an eye on global trends, foreign fund movements, and quarterly earnings, analysts said.

Stock market overview

The S&P BSE Sensex surged 484.53 points (0.58%) to close at 83,952.19, while the NSE Nifty 50 rose 124.55 points (0.49%) to 25,709.85.The market maintained its upward momentum, hitting a fresh 52-week high, fueled mainly by consumption-driven stocks. Analysts expect stronger volume growth and steady bank earnings, while easing concerns over asset quality have boosted overall industry confidence, Vinod Nair, Head of Research at Geojit Investments, said, ET reported.He further noted that the IT index faced pressure due to concerns over discretionary spending and rising asset quality risks in the US banking system."Global economic disruptions like escalating trade war and slowing economic data have made investors jittery, prompting them to seek refuge in gold, which has surged to a new all-time high. Despite these global uncertainties, the resilient domestic economic performance has bolstered investor sentiment, keeping Indian equities largely insulated," Nair added.

Global cues

Wall Street closed higher on Friday, supported by stronger-than-expected earnings from regional banks and investors’ response to President Donald Trump’s latest comments on China.

Meanwhile, European stocks slipped, with the STOXX 600 index falling nearly 1% amid renewed signs of credit strain in US regional banks. The index, however, managed a 0.4% weekly gain, supported by earlier optimism around corporate earnings and easing bond yields.

Technical view

"The sentiment around Nifty remains upbeat as the index moved above its four-month consolidation range," Rupak De, Senior Technical Analyst at LKP Securities, said, as reported by ET."Large-cap stocks clearly outperformed mid- and small-cap stocks on Friday — a classic bull market scenario. Technically, Nifty looks strong for a decent upside from here, and a ‘buy on dips’ strategy might prove effective. On the lower end, meaningful support is placed at 25,500, while resistance is seen at 25,850–26,000," De added.

Active stocks

By Turnover (BSE): Adani Power (Rs 2,811 cr), RIL (Rs 2,734 cr), Eternal (Rs 2,660 cr), HDFC Bank (Rs 2,525 cr), Infosys (Rs 2,449 cr), ICICI Bank (Rs 2,433 cr), Waaree Energies (Rs 1,927 cr)By Volume (NSE): Vodafone Idea (46.85 cr shares), YES Bank (19.91 cr), Suzlon Energy (17.36 cr), Adani Power (17.07 cr), Eternal (17.07 cr), Wipro (4.38 cr), BLS International Services (3.99 cr)

Stocks showing buying interest

Whirlpool India, Bombay Burmah, Adani Power, SBFC Finance, Delhivery, Asian Paints, Bharti Hexacom

Stocks under selling pressure

Infosys, HCL Tech, Eternal, Tech Mahindra, Tata Steel, Power Grid, L&T.

Over 156 stocks hit their 52-week highs, including Nestle India, Maruti Suzuki, and SBI, while 126 stocks fell to 52-week lows.

Market sentiment

Market sentiment was bearish on Friday, with 2,527 stocks declining, 1,641 advancing, and 158 remaining unchanged out of 4,326 stocks traded on the BSE.

Upcoming events & trading schedule

October 21: Special Muhurat trading session from 1:45 pm to 2:45 pm to mark the beginning of Samvat 2082. Regular trading will remain closed."The truncated trading week will be event-heavy, with several key triggers lined up for investors. Market participants will first react to the quarterly earnings from heavyweights such as Reliance Industries, HDFC Bank, and ICICI Bank, which are likely to set the tone for the broader market," Ajit Mishra – SVP, Research, Religare Broking Ltd, said."The Q2 FY26 earnings season will continue in full swing, with major companies including Colgate, Hindustan Unilever, Dr Reddys Laboratories and SBI Life Insurance Company scheduled to report their results," Mishra added.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)