Global cues may largely dictate Indian markets next week as Q4 earnings reach climax, analysts say - suggest investors to be cautious

The Indian markets may continue under pressure amid weak global cues, as the March quarter corporate earnings have come to a climax, besides, macro indicators and buzz in the primary market would also be the other factors that may impact the market next week, the experts estiamted.

D-Street will move in sync with global news flow as the result season approaches its climax, Yesha Shah, Head of Equity Research, Samco Securities said in her comment on market next week.

“Next week India’s WPI data will be released, and the much-anticipated Life Insurance Corporation of India will make its debut on the exchanges on May 17, 2022. Apart from these, no other major events are expected,” Shah further stated.

Therefore, the research head at Samco Securities believes that indices are expected to remain under pressure as selling is emerging on every bounce in absence of any positive catalysts.

And, she advised, “investors are therefore urged to remain on the sidelines since it is preferable to wait out the storm than to go bottom fishing during such turbulent phases.”

In line with Shah’s view, Ajit Mishra, VP - Research, Religare Broking Ltd said, “Global headwinds are currently weighing on the sentiment and the domestic factors are also not very encouraging. The fresh selling pressure in the banking pack is further adding to the negativity.”

Mishra reiterated his negative view and suggested investors continue with the ‘sell on the rise’ approach as most sectors are reeling under pressure, participants should align their positions accordingly and avoid contrarian bets.

Nifty50 ended this week sharply negative and is now trading around a strong support level of 15,700 which coincides with the bottom end of the downward sloping channel.

Technically, an immediate rebound in the Nifty and Bank Nifty is highly possible. Basis how the Nifty opens next week, highly aggressive traders may initiate long trades with a strict stop loss right below 15,700, Shah said adding that the immediate resistance is now set at 16,600 levels.

On Friday, the Nifty finally ended closer to the day’s low at 15,782.15 levels; down by 0.16 per cent, similarly, a mixed trend was witnessed on the sectoral front however the broader indices outperformed and ended higher by 0.8 per cent each, Mishra said in his comment.