Market Next Week: Tata Steel, Hero Moto, M&M results, RBI policy meeting, macro data, global cues among top cues for D-Street

Market Next Week: The volatility in the Indian markets is likely to persist in the coming week mainly on key events such as the RBI policy meeting decision on February 8 and macroeconomics data along with other factors such as December quarter earnings, global cues, and foreign investors' flow, analysts estimated.

They also expect that the trigger such as the rupee, crude oil, and bullion movement may also impact the equity markets in the next week between February 6-10, 2023.

We expect volatility to remain high in the coming week as we have important events and data lined up, Ajit Mishra, VP - Technical Research, Religare Broking said. “First, participants will be eyeing the outcome of the RBI policy meeting. On the economy front, IIP data will be unveiled on February 10.”

The monetary policy committee of the Reserve Bank of India is scheduled to meet during February 6-8, 2023, and will announce its decision on the third day. The central bank raised the policy repo rate by 35 basis points (bps) to 6.25 per cent in its December policy meeting.

“On the earnings front, major corporates like Tata Steel, Adani Ports, Ambuja Cement, Bharti Airtel, Hero Motocorp, Hindalco, Lupin, and M&M will announce their numbers during the week along with several others, the analyst at Religare Borking said in his expectations for next week.

Mishra said that the recent rebound in the index has eased some pressure, but cues are still mixed. Stability in the global markets is encouraging however the outcome of the RBI meeting, earnings, and further development of the Adani group may keep traders on the edge, the analyst noted.

While Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd said, “The direction of the US market will be closely watched, but the flow of FIIs will be crucial because they have been selling heavily in the Indian market since 2023 start, and it has intensified following the Adani Group crisis.”

For the next week, Anuj Gupta, Vice President, at IIFL Securities expects a positive trend may be seen in Nifty and Nifty Bank.

The former has strong support at 17500 levels and then 17300 levels while resistance at 18000 levels and then 18250 levels and the latter has strong support at 40600 levels and then 39800 levels while resistance at 42200 levels and then 42900 levels, Gupta said in his estimates.

“Traders can trade with positive bias with a stop loss of support levels. If Nifty breached 18000 levels then it may test 18200 to 18250 levels and if Nifty Bank is able to breached the level of 42000 to 42200 levels then it may test 42700 to 42900 levels,” Gupta said while giving technical levels.

Similarly, in his suggestion, Mishra urged investors to focus on sectors like IT and FMCG that are showing resilience and traders can also selectively look for buying opportunities in the auto and banking space.

At the same time, energy, pharma and realty may continue to underperform so plan your positions accordingly, he added.