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Earnings, auto sales data, rising COVID cases to drive market this week: Experts

Here what experts have to say about the market this week:

May 03, 2021 / 07:35 AM IST
Benchmark indices ended 2 percent higher in the week ended April 30 on the back of decent earnings performance from the Indian Inc. The BSE Sensex added 903.91 points, or 1.88 percent, to close at 48,782.36 and while the Nifty50 rose 289.75 points, or 2 percent, to end at 14,631.1 levels.
Benchmark indices posted ended 2 percent higher in the week ended April 30 on the back of decent earnings performance from the Indian Inc. The BSE Sensex added 903.91 points, or 1.88 percent, to close at 48,782.36 and while the Nifty50 rose 289.75 points, or 2 percent, to end at 14,631.1 levels. Here's what experts have to say about this week:
Rohit Singre, Senior Technical Analyst at LKP Securities | On the downside index has good support at 14580-14500 zone if managed to save said levels then some bounce possible otherwise we may see the next leg of a move towards 14200 zone on the downside, resistance is placed at 14730-14810 zone. We may see profit booking again around these levels.
Rohit Singre, Senior Technical Analyst at LKP Securities | On the downside, Nifty has good support at 14580-14500. A break below could take the index to 14200 zone. Meanwhile, resistance is placed at 14730-14810 zone. We may see profit-booking again around these levels.
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities | Supports would be 14600, 14500 and 14300. On the higher side, again 14850 and 15000 would be major obstacles. On the dismissal of 15050, Nifty would rally to 15500 levels. In the coming week, we would see further bullishness in Pharmaceuticals, Commodities and PSU stock. The value buying should emerge in Private Banks.
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities | Supports would be 14600, 14500 and 14300. On the higher side, 14850 and 15000 would be major obstacles. On the dismissal of 15050, Nifty would rally to 15500 levels. In the coming week, we would see further bullishness in pharmaceuticals, commodities and PSU stock. The value buying should emerge in private banks.
Ajit Mishra, VP - Research, Religare Broking | We expect volatility to remain high in the coming week too. First, participants will react to the Reliance Industries results which came in after market hours on Friday. Besides, monthly auto sales numbers will also start pouring in from May 1. In the following session, the election results of the 5 states will also be the focus on May 2. On the economy front, Markit Manufacturing PMI and Markit Services PMI data are scheduled on May 3 and May 5 respectively. Needless to say, updates related to COVID cases, vaccine drive and global cues will also be closely tracked. The recent bounce is certainly encouraging but sustainability above 15,000 is critical in Nifty for any directional up move else consolidation will continue. On the downside, 14200 will continue to act as a major cushion. We reiterate our view to stay with defensive names and keeping a check on the leveraged positions.
Ajit Mishra, VP - Research, Religare Broking | We expect volatility to remain high in the coming week. First, participants will react to Reliance Industries' results which came in after market hours on Friday. Besides, monthly auto sales numbers will also start pouring in from May 1. In the following session, the election results of the 5 states will also be the focus on May 2. On the economy front, Markit Manufacturing PMI and Markit Services PMI data are scheduled on May 3 and May 5 respectively. Needless to say, updates related to COVID cases, vaccine drive and global cues will also be closely tracked.
BSE Sensex
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | Indian markets could face headwinds on every rise because of the looming negatives and threat to earnings. One can stay cautious and look to have a buy on dips strategy for future investments. Going ahead more states may extend curbs to controls the virus. The staggered state level restriction and mini lockdowns this time is having a bigger impact on the services sector and a lesser impact on the manufacturing sector. We will certainly see GDP growth estimates and earnings estimates getting cut over the next 2-3 months. A persistent rise in commodity prices could be another threat that could hit the margins of manufacturing companies.
Nirali Shah, Head of Equity Research, Samco Securities | Domestic bourses in the following week are expected to be influenced by dual factors: quarterly results and further restrictions on increasing Covid cases. Volatility may also show further uptick as markets are asymmetric in nature and positive news can move the needle to some extent but any bad news can turn to be extremely brutal given the valuations are frothy. The tussle between the bulls and bears will continue in the next week too and there can be tiny corrections in stocks which have already run up following their year-end results. Long term investors are suggested to continue with their investments in marquee names in a staggered manner.
Nirali Shah, Head of Equity Research, Samco Securities | Domestic bourses in the following week are expected to be influenced by dual factors: quarterly results and further restrictions on increasing COVID cases. Volatility may also rise as markets are asymmetric in nature and positive news can move the needle to some extent but any bad news can turn to be extremely brutal given the valuations are frothy. Long term investors are suggested to continue with their investments in marquee names in a staggered manner.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going forward, after having moved 6% in last 2 weeks, markets are likely to be range bound as the fear of the continuous rise in covid cases and extended lockdowns in various states, are likely to cap the upside. We expect Nifty to trade in the range of 14200-15000 zone. So far the strong quarterly earnings season has been supportive to the market but the poor progress on the vaccination front is denting the sentiments. Investors would keenly track the state elections outcome and auto monthly sales data which would keep the market on the edge, while on the global front, key macro-economic data like US non-payroll farms data, US PMI data and BoE monetary policy would be kept an eye on.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Going forward, after having moved 6 percent in the last 2 weeks, markets are likely to be range-bound as the fear of the continuous rise in COVID cases and extended lockdowns in various states, are likely to cap the upside. We expect Nifty to trade in the range of 14200-15000 zone. So far the strong quarterly earnings season has been supportive to the market but the poor progress on the vaccination front is denting the sentiments. Investors would keenly track the state elections outcome and auto monthly sales data which would keep the market on the edge, while on the global front, key macro-economic data like US non-payroll farms data, US PMI data and BoE monetary policy would eyed.
Rakesh Patil
first published: May 3, 2021 07:35 am

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