Nifty 50 Prediction: The recent decline in Nifty 50 and BSE Sensex has created concern among investors. The current decline looks even more serious as it is the biggest decline in Indian exchanges after the decline due to COVID-19. In such a situation, questions arise in the minds of investors about whether this is the beginning of a long-lasting decline or is it just a temporary correction. In such a situation, we are telling you about the main reasons due to which the stock market can get a boost next week. So let's know what kind of boom the experts are predicting in the next week.

Stock Market Outlook For Next Week: Stock market outlook for next week

Ajit Mishra, Senior Vice President (Research), at Religare Broking Ltd, said, "The market continued to decline for the fourth consecutive week and slipped by more than 2.5 percent. After a sluggish start, the market remained negative throughout the week. This continuous decline was due to selling by foreign funds and disappointing earnings reports. Due to this, both the benchmark indices, Nifty and Sensex closed close to their weekly lows at 24,180.80 and 79,402.29 respectively."

He further added, "Sector-wise, realty, metals, and auto witnessed declines, though IT managed to hold steady. A major worry for traders has been the sharp fall in the broader indices, which are down between 5.75 percent and 6.45 percent after weeks of outperformance."

Ajit Mishra further added, "Two key concerns, namely selling by foreign institutional investors (FIIs) and weak earnings, will continue to weigh on sentiment in the coming week.

Besides, key companies like Adani Ports, Bharti Airtel, Cipla, Dabur, and LT are scheduled to announce their earnings, which will be closely watched. The upcoming expiry of October derivatives is also expected to increase volatility and with the new month, auto sales data will provide further cues."

He added, "Despite the lack of synergy with global markets, US market performance remains relevant, especially with continued speculation on interest rate cuts and the upcoming presidential election. Last week, the Dow Jones Industrial Average (DJIA) fell more than 2.5 percent, while the S&P 500 and Nasdaq Composite showed mixed trends, closing flat or marginally lower."

The Nifty index is approaching support near the 24,000 level after four weeks of decline. A break below this could weaken the sentiment further, potentially pushing the index towards the 200-day exponential moving average (DEMA) around the 23,450 mark. In an attempt to rebound, resistance could first emerge near the 100 DEMA near 24,500 and then around 24,850.

While most sectors except IT are under pressure, oversold conditions could trigger a selective rebound. Traders should continue with a "sell on edge" strategy and exercise extra caution, especially with midcap and smallcap stocks. Amid the current negativity, investors with a long-term investment horizon may consider gradually accumulating high-quality stocks.