BSE Power, Nifty Microcap 250 top gainers on BSE, NSE this week; Q4 earnings to drive D-Street next week, says analyst

The Indian markets settled with more than half per cent gains on the last day of the week as the Reserve Bank of India (RBI) chose to maintain status-quo around key lending rates on Friday, April 8, 2022.  

Benchmarks Nifty50 & S&P BSE Sensex closed higher by 0.8% and 0.7% respectively on Friday after ending in the red for three consecutive days. The market witnessed three negative closings and was in the green zone on two occasions this week.  

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"Market was cautious during the last 2-3 days ahead of the RBI meet and its future policy stance. Measures being in-line with market expectations led to a relief rally," said Vinod Nair, Head of Research at Geojit Financial Services.  

Except for Nifty IT, which closed with marginal cuts, all sectors saw positive closings with FMCG, metal, and consumer durable stocks drawing maximum buying interest on Friday.

Following headline indices, Nifty midcap, and small-cap indices gained 0.98% and 0.39% respectively on Friday.  

How do indices fare on NSE, and BSE this week?

Meanwhile, the Nifty50 and the 30-share Sensex managed to end positively with 0.6% and 0.3% gains respectively for the week ended April 8, 2022.  

With 9% gains, S&P BSE Power was the top-performing index on the BSE and Nifty Microcap 250 led indices on the NSE with 6% gains this week.

On the BSE, S&P BSE Utilities, S&P BSE SME IPO, S&P BSE Infra and S&P BSE CPSE were other leading gainers with 8.7%, 8.6%, 4.8% and 4.5% gains respectively.

Nifty CPSE (4.8%), Nifty Commodities (4.5%), Nifty FMCG (4.4%) and Nifty Metal (4.3%) were top-performing indices on the NSE this week

Triggers for next week

As the actions on Dalal Street were largely driven by RBI monetary policy committee’s meeting and its outcome this week, the coming week will shift its focus on corporate earnings.

“After RBI policy, the focus has shifted to the Q4 earnings season, which will start next week, initiated by the IT & Banking sector. Outlook for the banking sector is robust due to rapid bounce in credit growth & improvement in balance sheet while preview for IT is mixed as Q4 is seasonally weak," said Vinod Nair.

Technical Check

The technical chart hints at consolidation in the range of 500 points in the coming weeks.

“On the weekly chart, the Nifty has formed a candle that resembles a Doji pattern, which indicates loss of momentum after the recent run-up from 17000. The daily momentum indicator is also showing signs of fatigue. The overall structure suggests that a short-term consolidation is on the cards that can develop in the range of 17500-18000 over the next couple of weeks,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.