• The Indian stock market anticipates key macroeconomic data and Q2 earnings, influencing market outlook.
• Global events, like the US inflation report, are also expected to impact the market.
• The market has been under pressure due to weak Q2 results, a stronger dollar, and continuous selling by Foreign Institutional Investors (FIIs).
• The market's performance will be influenced by these factors, along with global events such as the US inflation report.

The Indian stock market is gearing up for a significant week with the release of key macroeconomic data and the final round of Q2 earnings. These factors are expected to guide the market outlook.

The Consumer Price Index (CPI) and Index of Industrial Production (IIP) data are set to be released on November 12, with the Wholesale Price Index (WPI) data expected on November 14. These data releases are crucial as they provide insights into the health of the Indian economy, influencing investment decisions.

In addition to domestic data, global events are also expected to impact the market. The US inflation report, due on November 13, is of particular importance as it may influence the Federal Reserve's upcoming policy stance. The US inflation report is closely watched by investors worldwide as it can impact global financial markets, including India.

The Indian stock market has been under pressure recently, with the Nifty and Sensex both closing in the deep red last week. The Nifty fell 0.64 per cent or 156 points to 24,248, and the Sensex fell 0.30 per cent or 237 points to 79,486.

The decline is believed to be due to weak second-quarter results, a strengthening of the dollar, and continuous selling in the market by Foreign Institutional Investors (FIIs).

FIIs and DIIs: The Market Movers

FIIs have been offloading their holdings, with net selling amounting to Rs 19,637 crore in the cash segment. On the other hand, Domestic Institutional Investors (DIIs) have been providing support, purchasing Rs 14,391 crore. The continuous selling by FIIs has been a cause of concern as it can lead to a liquidity crunch in the market, impacting stock prices.

Market experts have been closely monitoring the situation. Santosh Meena, Head of Research at Swastika Investmart, noted that the Nifty struggled to cross its 20-day moving average (20-DMA) around the 24,500 level.

He emphasized that sustaining above the 20-DMA is essential for a meaningful short-covering rally, with resistance levels at 24,700 and 25,000. On the downside, immediate support lies at 24,075, with additional support at 23,800 and the 200-DMA around 23,500.

Palka Arora Chopra, Director of Master Capital Services, provided insights into the Bank Nifty, which ended the week flat, facing strong resistance in the 52,500-52,600 range. She suggested a sell on rise approach for the coming week if Bank Nifty closes below the 21-day EMA, aligning with the current trend.

Global Factors and Market Performance

The market's performance has been influenced by various factors, including the performance of the IT sector, which was boosted by the US Fed's quarter-point rate cut and positive commentary on economic growth and inflation. However, the Indian rupee weakened to a record low, pressured by sustained outflows from local stocks and expectations of a stronger dollar after Donald Trump's poll victory.

The market is also awaiting the results of several IPOs and listings. Among them, Zinka Logistics Solution Limited IPO or BlackBuck IPO will open for subscription this week, while Niva Bupa Health Insurance IPO will close for bidding on November 11. Shares of Sagility India, Swiggy Ltd, ACME Solar Holdings, and Niva Bupa Health Insurance are set to debut on stock exchanges BSE and NSE this week.

Investor sentiment has been subdued, weighed down by persistent FII selling and underwhelming Q2 results. Foreign investors continued to pull back, with net outflows from 29 consecutive sessions between September 27 and November 8, totalling around $13 billion. This withdrawal was attributed to increasing interest in China, driven by Beijing's stimulus measures and the relative attractiveness of Chinese market valuations.