Markets may remain under pressure amid Q4 earnings, F&O expiry: Experts This week, investors would keep an eye on the outcome of the Federal Open Market Committee meeting for any change in interest rates and their future guidance on inflation. Any central rate change will have a ripple effect on other rates, including foreign exchange rates and bond prices which may have a sizeable influence across emerging markets, said Nirali Shah of Samco Securities.
April 26, 2021 / 07:48 AM IST
Indian markets remained under pressure last week as the resurgence of COVID in the country forced investors to reassess their expectation on economic recovery. Last week, BSE Sensex fell 953.58 points or 1.95 percent to finish at 47,878.45 and while the Nifty50 shed 276.45 points or 1.89 percent to close at 14,341.4 levels. The broader market outperformed the frontliners as the BSE Midcap Index shed 1 percent and the BSE Smallcap index ended flat. Here's what the experts said about this week:
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities | The short-term texture of Nifty/Sensex remains bearish. 14250/ 47450 would be the immediate support level for the bulls. A break below could lead to a correction up to 14150/47150 and then 14000-13900/46500-46000. On the flip side, 14500/48300 would be the immediate hurdle for Nifty/Sensex.
Nirali Shah, Head of Equity Research, Samco Securities |This week, investors would keep an eye on the outcome of the Federal Open Market Committee meeting for any change in interest rates and their future guidance on inflation. Any central rate change will have a ripple effect on other rates, including foreign exchange rates and bond prices which may have a sizeable influence across emerging markets. Also, Concurrently, with the ramping up of vaccination drive, it is expected that focus would shift back to growth, cyclical recovery and fundamentals.
Ajit Mishra, VP Research. Religare Broking | The monthly expiry of April derivatives contracts will keep the traders on their toes. On the data front, core sector data will be unveiled on April 30. The recent proposal by the US president to raise capital gains tax has started showing its impact in US markets which may cascade to others in the coming week. Needless to say, the COVID-related updates will remain on the participants’ radar. We reiterate our view that the prevailing sideways bias in Nifty would end below 14,100 and it may slip towards the 13,800 zone. In the case of a rebound, 14,600 would act as a crucial hurdle. We feel it’s prudent to stay with defensive names.
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | Fresh lockdowns and restrictions will impact demand and also business activity. The persistent rise in hard commodity prices is a threat that could weigh on margins of many manufacturing companies. Given the near term challenges, we can expect FPI flows to remain subdued in the near term. On the downside, Nifty has major supports at 13,600 and 13,000 which is likely to be the 200 DMA in near future.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Indian markets are likely to remain volatile until COVID-19 cases are contained. Once the availability and the pace of vaccination pick up, we expect the narrative to gradually shift from COVID-19 back to fundamentals. We would recommend investors take advantage of this volatility as the medium-term thesis remains unchanged.
Ashis Biswas, Head of Technical Research at CapitalVia Global Research | Any corrective wave down should find support around 14180-14200. Traders should refrain from fresh buying until we witness a correction till 14180-14200 levels or a breakout above 14400.
Rohit Singre, Senior Technical Analyst at LKP Securities | The index has created a good base near the 14250-14200 zone. Any close below the said levels may drag the index to much lower levels. On the higher side, stiff hurdle is 14450-14500 zone and we see fresh strength above 14500 zone. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments | The close above 14200 on Nifty is a positive sign for the markets. If we break this level, the markets can slide down to 13800-13900. The upside is capped at 14550-14600 and any rally up will be used to short the markets.