Indian stock markets are heading into Monday’s session with investors watching global developments closely after benchmark indices ended the previous week on a cautious note. High crude oil prices, rising global bond yields and geopolitical tensions are expected to remain key factors for the Sensex and Nifty on August 24.

The Nifty 50 slipped around 0.47% during the week to close at 24,252, while the Sensex declined nearly 0.60% and settled at 77,540.83. The broader market performed relatively better, with the SmallCap index gaining about 1.2%, while the MidCap index ended marginally lower.

Friday’s session was largely range-bound. The Sensex gained just 3.11 points to close at 77,540.83, while the Nifty 50 added 20 points, or 0.08%, to finish at 24,252. The two benchmarks have now recorded losses for two consecutive weeks.

Investors are likely to track developments in the US Federal Reserve’s policy outlook, Nvidia’s quarterly results and the ongoing US-Iran conflict, according to market analysts. These global factors could influence investor sentiment at a time when domestic equities are already recovering from a recent correction.

Ponmudi R, CEO of Enrich Money, said crude oil prices, US Treasury yields and the dollar would remain important for Indian equities in the coming week. Movements in the rupee and institutional investment flows are also expected to be closely watched.

The earnings season is another factor that could influence individual stocks, although much of the June-quarter results season has now concluded. With fewer major domestic corporate results left, global macroeconomic developments and geopolitical events could have a greater bearing on the near-term market direction.

Sensex outlook

The Sensex opened Friday with a gap-up of nearly 163 points at 77,701.01 and touched an intraday high of 77,725.67. The gains did not sustain, however, and the index later slipped to 77,445.86 before moving within a narrow range.

According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, the index remains around its 50-day exponential moving average but is still below the important 200-day EMA, keeping the broader trend cautious.

The immediate support zone for the Sensex is seen around 77,000-77,380, while the 77,720-78,000 range remains an important resistance area. Tailor said a sustained move above the resistance zone could improve the short-term outlook, while holding above the support area would keep the current consolidation pattern intact.

The Nifty’s performance will also be watched closely after the index closed at 24,252 on Friday. Traders are expected to monitor global markets, crude prices, currency movements and foreign institutional flows before taking fresh positions.

For Monday, market participants may therefore remain cautious rather than expect a one-way move. Any sharp change in global risk sentiment could quickly influence domestic indices, particularly as the market remains sensitive to oil prices, bond yields and geopolitical developments.