Mumbai: The domestic equity market is expected to remain in a sideways or consolidating phase, as benchmark indices show mild selling pressure at higher levels on the weekly charts.

The coming week will be crucial, with several key macroeconomic indicators due. On the domestic front, focus will be on India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data, which are expected to provide clarity on inflation trends and guide future monetary policy decisions.

During the week, the Nifty 50 closed at 25,492.30, marking a 0.89 per cent decline from the previous week’s close. The fall was largely attributed to continued selling by foreign institutional investors (FIIs), despite signs of resilience in the domestic economy.

Cautious investor sentiment also stemmed from fading expectations of a US Federal Reserve rate cut and mixed global cues, while weakness in the IT and metal sectors weighed on the indices.

Analysts noted that the formation of a bearish-bodied candle with a lower wick and a small upper wick on the weekly chart indicated selling pressure at higher levels.

“The price action reflects a sideways to consolidation phase, as the Nifty index failed to hold its higher levels and ended the week below the 25,500 mark,” analysts said.

This pattern suggests that the index could continue to consolidate or move sideways in the near term, according to Hardik Matalia of Choice Broking.

The India VIX, a measure of market volatility, rose 3.33 per cent during the week to close at 12.5575, indicating a slight increase in volatility.

“In the derivatives segment, the maximum Call open interest (OI) is concentrated at the 25,600–25,700 strike levels, suggesting strong resistance at higher zones. On the downside, the maximum Put OI is seen at the 25,400–25,300 strike levels, indicating key support areas,” Matalia noted.

Meanwhile, the Bank Nifty closed the week at 57,876.80, up 0.17 per cent from the previous week’s close.

On the weekly chart, the index showed signs of indecision, reflecting a tussle between buyers and sellers. “The index ended the week above the 57,800 mark, indicating stability but a lack of clear direction. Overall, the setup suggests a sideways to consolidation phase until a decisive breakout occurs on either side,” Matalia added.

IANS