Weekly Market Outlook - Rahul Sharma, Senior Research Analyst - Equity99

"On-going corporate earnings, up-coming Karnataka State elections, macroeconomic data and crude oil price movement will dictate trend on the markets in the near term. On the macroeconomic front, Markit Economics will unveil the result of a monthly survey on the performance of India's manufacturing sector in April 2018 on Wednesday. It will also unveil the result of a monthly survey on the performance of India's services sector in April 2018 on Friday.

On Monday, Reliance Industries stock price will remain in the limelight as the market will react to its Q4 March 2018 result declared after market hours on last Friday.

On the political front, the battlefield of elections in Karnataka State assembly will be keenly watched. Any new change in trend will affect investors sentiments in the coming month.

On the global front, US Federal Reserve's Federal Open Market Committee (FOMC) will announce the decision on the interest rate on Wednesday and the widespread expectation is that the central bank will keep rates unchanged in May 2018 but will raise them again in June 2018.

Nifty has now broken out from a pennant pattern on the daily chart indicating that the current momentum is likely to get extended further. However, 10,740 is the immediate resistance beyond which the optimism would probably improve. On the downside, the 10,500 mark will remain important support".

Source : Equity Bulls

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