Nifty, Sensex close with small weekly gain of 0.8%

Anita Gandhi, Whole Time Director at Arihant Capital Markets

"For the week, the benchmark Nifty and Sensex closed with small weekly gain of 0.8%. The Bank Nifty however, suffered a weekly correction of 1.02%, due to the ongoing disruption in the banking sector in India and on the valuation front Nifty is trading at price-to-earnings multiple of 26.22x.

Sectors in trend: IT index rose by 4.8%, Metals index surged by 4.5% and FMCG index gained by 4%

The IMD has forecasted that India is likely to receive normal monsoon in 2018 which will further improve the market sentiments next week and HDFC Bank, Bharti Infratel, Bharti Airtel, Bajaj Corp, Ultratech, Wipro, Axis Bank, Biocon, Tata Elxsi, Yes Bank, IDFC, Maruti Suzuki and RBL Bank will come out with their results next week.

On macro front, there are no major events this week.

On the global front, Japanese Flash Manufacturing PMI, European Flash Manufacturing & Services PMI, US Flash Manufacturing & Services PMI and US Existing Home Sales data will be announced on Monday, April 23. BOJ Core CPI, US CB Consumer Confidence and US New Home Sales data will be announced on Tuesday, April 24. US Crude Oil Inventories data will be announced on Wednesday, April 25. ECB Monetary Policy, US Durable Goods Orders and US Unemployment Claims data will be announced on Thursday, April 26. Japanese Industrial Production, BOJ Monetary Policy, Japanese Housing Starts, UK GDP and US GDP data will be announced on Friday, April 27.

Technical outlook for the week : Since prices have entered the supply zone of 10468 to 10702 there is a probability of a consolidation/correction from current level cannot be ruled out.

At present Nifty has resistance at 10665 - 10722 - 10798 levels whereas on the downside it has support at 10462 - 10405 - 10338 levels.

In coming week if nifty trades and close above 10607 level then it is likely to test 10665 - 10722 - 10798 levels. However, if nifty trades and close below 10520 level then it can test 10462 - 10405 - 10338 levels.

Broadly, for current week we are of the opinion that 10400 remains crucial support. Hence in current week if nifty holds the mentioned level then there is a possibility that nifty would test the resistance of 10665 - 10722 - 10798 levels. However stock specific activity is likely to continue going forward".

Source : Equity Bulls

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