Q2 earnings, global cues, and macroeconomic numbers among others will dictate markets trend in holiday-shortened next week

Market Next Week: The Indian markets will mainly be influenced by the last leg of second-quarter earnings, global cues, macroeconomic numbers among others in the holiday-shortened next week, several analysts expect.

Moreover, they also believe that foreign investors' flow, currency movement, and crude oil trend shall also dictate the market's trend in the coming week.

The coming week is holiday-shortened and the market will be eyeing earnings and macroeconomic data that is IIP for cues. Besides, the trend of the foreign flows and the performance of the global markets will also be in focus, Ajit Mishra, VP - Research, Religare Broking Ltd said in his quote.

“On the earnings front, four auto majors viz. Tata Motors, Eicher Motors, Ashok Leyland, and M&M will announce their numbers along with other prominent names like BPCL, Divis Lab, Lupin, and Zee Limited during the week, the VP – Research at Religare Broking further said in his expectations.

The markets have been gradually inching higher toward the record high however volatility on the global front is capping the momentum so far, Mishra said. “We expect the prevailing trend to continue and eyeing 18,350 and then 18,700 in the Nifty50.”

“After two weeks of pause, banking looks set to resume the uptrend as well. Since all sectors are contributing to the move, we recommend preferring the top performers from the respective sectors and accumulating them on dips,” the market analyst further said.

On a technical aspect, the index is firmly placed above all the major exponential moving averages. We have seen some tentativeness at higher levels; but we do not construe this as any sign of worry, Apurva Sheth, Head of Market Perspectives, Samco Securities.

“Traders are just opting to take some money off the table after seeing a decent up move in a previous couple of weeks,” Sheth said.

As far as levels are concerned,17750-17700 is likely to cushion any fall on an immediate basis; whereas on the flipside, a decisive breach over the immediate resistance of 18200 could trigger a strong rally towards 18400 and beyond, the market analyst said in her expectations.

Markets extended gains for the third successive week and rose nearly 2 per cent. After the firm start, the benchmark remained range bound in the following sessions however rotational buying across heavyweights helped the index to maintain the positive bias.

Consequently, the Nifty index reclaimed 18,100 levels almost after seven months. Among the sectoral indices, the majority ended higher wherein metal outshined the others. While both the broader indices ended higher, the outperformance by the midcap pack continued.