Sensex, Nifty this week: Q4 results, US jobs data to guide Dalal Street

The Indian markets ended the past week with a decline of over 1.5 percent as rising geopolitical tensions in the Middle East weighed on global sentiments. This week, the market is going to watch closely India’s manufacturing PMI, services PMI, Foreign Exchange Reserves data, quarterly results of blue-chip companies along with the trade data, and jobless claims data in the US for guidance.

Results in focus: In the ongoing result season, traders will be closely watching the earnings of prominent companies, including Reliance Industries, Axis Bank, Hindustan Unilever, LTIMindtree, Nestle India, Tech Mahindra, HCL Technologies, Maruti Suzuki India and ICICI Bank will release their Q4 earnings.

Other major companies, which will announce their Q4FY24 results during the week are Bajaj Finserv, MAS Financial Services, Tata Consumer Products, Tata Elxsi, Mahindra and Mahindra Financial, Bajaj Finance, Persistent Systems, Cyient, IndusInd Bank, L&T Technology Services, Bajaj Holdings And Investment, L&T Finance, SBI Cards and Payment Services and SBI Life Insurance Company etc.

Economic data: Investors will be eyeing HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash, which is scheduled to be released on April 23. The HSBC India Composite PMI was revised upward to 61.8 in March 2024 from a preliminary reading of 61.3, pointing to the second-strongest upturn in over the past years. Foreign Exchange Reserves data to be out on April 26. Foreign Exchange Reserves in India increased to $648560 million on April 5 from $645580 million in the previous week.

US market data: On the global front, investors would be eyeing some important economic data from the world’s largest economy, the United States (US), starting from the Chicago Fed National Activity Index on April 22, Redbook, S&P Global Composite PMI Flash and New Home Sales, on April 23.

Besides these, Durable Goods Orders on April 24, Goods Trade Balance Adv, Continuing Jobless Claims, Real Consumer Spending, on April 25, and Michigan Consumer Sentiment, Baker Hughes Oil Rig Count on April 26 data will be released.

Market veteran Deepak Jasani, Head of Retail Research at HDFC Securities says Nifty reversed a four-day losing streak to end Apr 19 higher. At close, Nifty was up 0.69 percent or 151.2 points at 22147. Cash market volumes on the NSE fell to Rs.1.0 lakh cr. Broad market indices fell even as the advance-decline ratio remained flat at 0.84:1.

Jasani added that an increase in tensions in the Middle East kept global stock markets on the brink, though they recovered after Iranian media appeared to talk down the impact of Israeli strikes.

Technical outlook for Nifty: Nifty made a bullish piercing pattern formation on daily charts on April 19 that could denote a short-term upward reversal. “On weekly charts, Nifty fell with a down gap, which could denote some medium-term weakness unless the gap is filled soon. It could in the near-term face resistance from the 22427-22503 band while the 21,710-21,778 band could offer support,” Jasani said.

Bank Nifty: According to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, The Bank Nifty Index displayed strong bullish momentum as it formed a bullish piercing candlestick pattern from the support level of 46,500. The immediate resistance for the index is located at 48,000, where there is a significant buildup of open interest on the call side, indicating a potential hurdle. “The index has established immediate support between 47,200 and 47,000. Any pullbacks towards this support zone are seen as buying opportunities, suggesting continued bullish sentiment if these levels hold,” Shah said.