The Nifty50 rose about 1.5% for the week ending September 12, marking its second consecutive week of gains, powered by positive sentiment in autos, banks, and pharma.

Analysts believe the period from September 18-19 will be crucial for determining the market’s near-term direction, with key resistance and support levels expected to be tested. 

Technical factors such as chart patterns and momentum indicators are being closely watched as traders anticipate possible breakouts or retracements. 

Despite positive momentum, market participants are cautious because of unresolved global risks like U.S. tariffs and macro uncertainty. 

Domestic institutional investors may play a stabilising role if foreign institutional investor (FII) outflows continue. 

Other influences this week will include crude oil prices, the rupee’s movement, and any fresh inflation data. 

IPO activity and policy announcements are also expected to inject volatility or direction as companies seek to tap investor interest. 

Auto stocks have already shown strength, benefiting from recent tax cuts and improving demand forecasts.

Analysts warn that if resistance around current highs fails, there could be pullbacks, especially in sectors sensitive to global trade and capital flows.

Overall, the market outlook is cautiously optimistic, with many seeing the coming days as make-or-break for whether the recent rally can sustain itself.