Analysts predict that global trends will have an impact on the Indian stock market scenario this week.

 Analysts anticipate that global trends will shape the trajectory of the Indian stock markets this week. With limited local developments and the majority of companies having already reported their quarterly results, traders will closely monitor factors such as crude oil prices, currency fluctuations, and statements from the US Federal Reserve meeting.

Ajit Mishra, Senior Vice President (Technical Research) at Religare Broking Limited, emphasized the significant influence of global cues on market movements in the upcoming week, despite the importance of company earnings.

Despite fluctuations, last week concluded with gains as domestic markets closed positively, supported by robust macroeconomic data. Major indexes saw gains of over 1 percent, with the Sensex ending at 72,426.64 and the Nifty at 22,040.70.

The market also received a boost from favorable macroeconomic indicators, including a three-month low in retail inflation at 5.1 percent in January. Vinod Nair, head of research at Geojit Financial Services, highlighted strong buying in the banking sector as a key factor driving major indices upward.

Investor expectations for a Federal Reserve policy rate cut have increased following a decline in US retail sales. Moreover, anticipation of increased demand in China has further bolstered market sentiment.

While historical market patterns may appear similar, they are not exact repetitions. Recognizing market peaks, when investor enthusiasm is at its peak, can be challenging. Currently, the Nifty approaches the 22,130 level for the third time, while weekly momentum indicators have shifted to a sell signal for both the Nifty and Smallcap index. Additionally, the Nifty Smallcap 100 index has closed lower for the second consecutive week, signaling a divergence in the indices.