Indian equity markets will be on a long break as trading in stock exchanges will be shut starting from today (14 April) till April 17. The National Stock Exchange and the Bombay Stock Exchange will remain closed for four consecutive days on account of Ambedkar Jayanti, Good Friday and the weekend. Wholesale commodity markets, including metal and bullion, will also remain shut. There will be no trading activity in forex and commodity futures markets either. In the previous session, both benchmark indices ended in red with Sensex closing 237.44 points, or 0.41 per cent down at 58,338.93, and the NSE Nifty 50 was down 54.60 points, or 0.31 per cent at 17,475.70.
Ajit Mishra, VP – Research, Religare Broking
“We have a long weekend ahead and markets will react to two major earnings i.e. Infosys and HDFC bank on Monday i.e. April 18. Besides, any major development on the global front in the next four days would also impact the sentiment. On the index front, Nifty is currently respecting the first line of defence i.e. 20 EMA on the daily chart around 17,400 and its breakdown can push the index to the 17,250 zone. In case of a rebound, the 17,650-17,750 zone would act as an immediate hurdle. We suggest preferring hedged bets and maintaining focus on stock selection.”
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Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
“Domestic markets witnessed some selling pressure in a short trading week as investors remained cautious given sustained high inflation and its impact on economy. Going ahead, market is likely to remain volatile till the inflationary pressure persists, raising scope for aggressive rate hike by Central Banks globally. Q4FY22 result season has started with TCS numbers being in line with expectation and Infosys missing estimates. Index heavyweight HDFC Bank will be announcing its results over the long weekend to which the market would react on Monday Overall we expect healthy 4QFY22 earnings which should drive the stock specific action in the market.”
Yesha Shah, Head of Equity Research, Samco Securities
“As earnings season gathers pace, D-street will be eyeing quarterly results to gauge the future trajectory of Mr. Market. BFSI as well as IT companies will be in the limelight as market players decode results and management commentary of a slew of companies in these sectors. As no major global or domestic macroeconomic events are expected next week, stock-specific movements will be more pronounced and whipsaw movements can be witnessed as a result of earnings hits and misses. Therefore, instead of basing investment actions solely on quarterly performance, investors should consider long-term potential of their investee companies and stay put in resilient ones.”
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Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
“It was certainly a bit challenging week for our markets and obviously, due to such a long gap, market participants chose to take some money off the table and did not carry over aggressive trades. Now if we take a glance at the daily time frame chart, we can see Nifty placed at a crucial juncture. Firstly, the sacrosanct support of ’20-day EMA’ is positioned at 17450 which coincides with the breakout point of the previous congestion zone. Hence till the time, Nifty is holding 17400 – 17200, we remain a bit hopeful of some recovery here. We hope there is no aberration on the global front in the coming days and any favorable cue would certainly be a cherry on the cake.”
“On the upside, 17700 followed by 17850 are the levels to watch out for. If Nifty has to regain any strength, it needs to surpass these barriers with some authority. Let’s see how things pan out and in our sense, if the benchmark has to move higher from here, the banking needs to take the charge (which we are assuming on this occasion). The Bank Nifty is placed at its rock-solid support of 37000 – 36800. A move beyond 38000 would provide the impetus for the next leg of the rally. Apart from this, although the broader market underwent some profit booking in the last couple of days, we still expect the smaller names to outperform going forward.”
