Sensex, Nifty: What to expect at the market this week?

The US-China trade issues, movement of rupee and crude oil as well as the Federal Reserve's interest rate decision will play a key role in deciding the market trend this week, according to the experts. Here's what they have to say:

"We are likely to see some more consolidation given risk factors like surge in oil prices, strengthening of dollar and fiscal deficit worries. However, given sharp corrections, we expect value-buying to emerge in sectors /stocks where earnings outlook are healthy. For the week ahead, US FOMC meeting is the key event," said Vinod Nair, Head of Research, Geojit Financial Services.

"US Federal Open Market Committee (FOMC) will announce the rate decision this week. After a sharp correction in recent times, we feel markets have touched an intermediate bottom. It is likely to consolidate," said VK Sharma, Head PCG and Capital Market Strategy, HDFC Securities.

Commenting on the near-term movement of Nifty, Way2Wealth said the last week  low of 10,866 will act as an immediate support below which index will test its 200 day moving average which is currently pegged near 10,750. 

Way2Wealth said, "At this juncture, the near-term outlook is weak. Hence, sell on rise will be a prudent strategy.  As far as the levels are concern, 25,800 is likely to act as an immediate hurdle for the above which the strong  resistance is placed near 26,570. On the flip side, 25,000 is likely to act as an immediate support below which index may correct till 24,620."

Meanwhile, crude oil prices fell to $80 barrel signalling volatility in global and Indian markets ahead. JP Morgan said in its latest market outlook that "a spike to $90 per barrel is likely" for oil prices in the coming months due to the Iran sanctions. The bank said it expects Brent and WTI to average $85 and $76 per barrel, respectively, over the next six months.

US tariffs on $200 billion worth of Chinese goods and retaliatory tariffs by Beijing on $60 billion worth of US products have come into effect. The new tariffs will have adverse effects in global markets whose ripple effects will be seen on Indian markets too, according to experts. The two countries have already imposed tariffs on $50 billion worth of each other's goods earlier this year.