Amid weak global signals, Indian markets may continue to be under pressure as the March quarterly corporate earnings climax, as well as macro indicators and early market buzz may be other factors that could affect the market next week, experts predict.
Yesha Shah, head of equity research at Samco Securities, said in her comments on the market next week that D-Street will be consistent with the global news flow as the season of results approaches its final stage.
“India’s WPI data will be released next week, and the much-anticipated Life Insurance Corporation of India will make its debut on the exchange on May 17, 2022. Apart from these, no other big event is expected,” Shah added.
Therefore, the head of research at Samco Securities believes that indicators are expected to be under pressure as each bounce is being sold in the absence of a positive catalyst.
And, he advised, “therefore investors are being asked to stay on the sidelines because it is better to wait for the storm than to fish down in such turbulent times.”
Consistent with Shah’s view, Ajit Mishra, VP-Research, Religare Broking Ltd., said, “Headwinds around the world are currently weighing on sentiment and domestic factors are not very encouraging. The pressure of new sales in the banking pack is adding to the negativity. ”
Mishra reiterated his negative view and advised investors to continue with the ‘sell on the rise’ approach as most sectors are under pressure, participants should align their positions accordingly and avoid reverse bets.
The Nifty50 ended sharply negative this week and is now trading near a strong support level of 15,700 which coincides with the lower end of the downward sloping channel.
Technically, an immediate rebound in Nifty and Bank Nifty is highly possible. Depending on how the Nifty opens next week, highly aggressive traders could start long trades with a drastic stop loss below 15,700, Shah said, adding that immediate resistance is now set at 16,600.
On Friday, the Nifty finally ended near the day low at 15,782.15; 0.16 per cent decline, similarly, a mixed trend was observed on the sectoral front but exceeded the broader indicators and ended higher by 0.8 per cent each, Mishra said in his remarks.