The market outlook for the upcoming week is set to be influenced by significant domestic and global economic data. Key indicators to watch include India's Wholesale Price Index (WPI) Inflation (YoY) for September, Consumer Price Index (CPI) data for September, Bank Loan Growth, and Deposit Growth.

In addition, the second quarter (Q2) earnings reports of Indian companies will play a critical role in driving stock and sector-specific movements. Investors will also be monitoring updates from major economies such as the US, China, and Japan.

The second-quarter earnings season is underway, and this week will see a surge in financial results, potentially impacting various sectors and stocks.

Additionally, factors like fluctuations in crude oil prices, movements in the dollar index, and activities of foreign institutional investors (FIIs) could affect overall market sentiment.

Last week, the markets saw a period of consolidation after a steep decline from all-time highs in both the Nifty and Sensex. The week began on a lower note but recovered from its dip by week's end.

While FIIs continued to offload shares, their selling slowed somewhat. FIIs sold approximately Rs 28,000 crore worth of equities, while domestic institutional investors (DIIs) countered this with purchases exceeding Rs 31,000 crore.

Santosh Meena, Head of Research at Swastika Investmart, noted, "Technically, Nifty has formed a near-term bottom around the 24,750 level. To regain momentum, it must break through resistance at 25,330 and 25,500. A drop below 24,750 could lead to further selling pressure, potentially pushing it toward 24,440 and 24,100."

Palka Arora Chopra, Director at Master Capital Services, commented on the banking sector, "The Bank Nifty is trading within a parallel channel and remains above the weekly 21 EMA, signaling a positive trend. While it faces resistance at higher levels, the index closed above its channel. Support is around 50,600, with a possible drop to 50,000 if breached. Resistance is at 51,700, and a breakout above this could lead to 52,200. The market is likely to remain sideways next week, suggesting a buy-on-dips strategy."

In the broader economic context, the Reserve Bank of India (RBI) kept its key interest rates unchanged last week, while shifting its policy stance to "neutral." This opens the possibility of rate cuts as early as December. The RBI also maintained its FY25 GDP growth forecast at 7.2 percent and projected CPI inflation at 4.5 percent for FY25.