Q4 earnings, macro data, global trends among others to drive markets in holiday-shortened next week: Analyst

Quarterly earnings from IT majors TCS and Infosys, macroeconomic data announcements and global trends would be the major guiding factors for the equity market in a holiday-shortened week ahead, analysts said.

Stock markets will be closed on Thursday for Mahavir Jayanti and Dr Babasaheb Ambedkar Jayanti, as well as on Friday on account of Good Friday.

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"This week is a holiday-shortened one but it's going to be critical as it kickstarts the earnings season with two IT majors, TCS and Infosys announcing numbers.

"Besides, on the macroeconomic front, participants will be eyeing IIP and CPI inflation data on April 12. Apart from domestic factors, global cues like updates on Russia-Ukraine and performance of global markets will remain on the radar," said Ajit Mishra, VP - Research, Religare Broking Ltd.

Markets would also focus on the trend in rupee, foreign institutional investors and Brent crude.

"The earnings session will kick off with results of major IT names TCS and Infosys which are scheduled on the 11th and 13th of April, respectively. Apart from earnings, global cues, crude oil prices, and FIIs' flow will play an important role in the direction of the market," said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Last week, the Sensex slipped 170.49 points or 0.28 per cent, while the Nifty shed 113.90 points or 0.64 per cent.

Yesha Shah, Head of Equity Research, Samco Securities, said, "Inflation and results will take centre stage this week. While global investors will be influenced by inflation numbers of the United States and China, the CPI print in India will be an important domestic indicator to keep an eye on.

"Additionally, Indian IT firms will be in the spotlight as the leaders will announce their Q4 results."

Geojit Financial Services' Head of Research Vinod Nair also said that going ahead, focus will shift to Q4 earnings season starting this week, initiated by IT and banking sectors.

"Markets also await release of major domestic economic data such as inflation rate for March, industrial production and manufacturing production data this week," Nair added.

Technical Outlook By Shah

While the Nifty 50 index ended the week positively, higher selling pressure was witnessed near 18,100 levels which led to a reversal of momentum. On the weekly chart, the index formed a shooting star candlestick pattern which suggests that there can be a short-term weakness in the market.

Similarly, both the US and European indices are forming lower tops. Despite this, their short-term trend remains bullish. Given this background, we recommend that traders retain a modestly bullish outlook.

The immediate support and resistance for the benchmark are now placed at 17,600 and 18,100 levels. Any break below the support will need a re-examination of the bullish bias.

(With PTI Inputs)