Mr. Manish Yadav, Head of Research, CapitalAim
The Benchmark Nifty50 started the week on a negative note due to some profit booking from higher levels and remained range bound in the short trading week, as markets were closed on Monday and Wednesday. It traded between the range of 11800 to 11650 levels on daily charts. Nifty is consolidating around higher levels but could not sustain above important levels of 11800. Traders are cautious of general elections as now the elections have entered its midway. However, the slowdown in economic growth could be a matter of concern for traders & investors. Once Nifty sustains above 11800 levels then we could see a further uptrend in it but if it does not sustain above this level then there could be fall in Nifty till the support of 11550 levels.
On Friday market, Benchmark Nifty opened on a positive note and made a high of 11766.75 in the first half of the session but then it remained sideways. This positive start was due to fall in crude oil prices and strength in Indian Rupee which are positive factors for the Indian market. Along with this, gains in HDFC Bank and Kotak Mahindra Bank also added to the positive start of the Benchmark Index for the session but slower to 8 month Factory Growth & decline in PMI to 51.80 in April from 52.60 in March and also with the stronger Indian Rupee, IT stocks shown some decline which capped the gains in Benchmark Nifty.
Next week would have a normal number of trading sessions but there would be 5th phase of general elections out of total 7 phases. Key results, index heavyweight Bharati Airtel, ICICI Bank, Titan, HCL Tech etc. will declare its March quarter results this week. On the global front, early next week China & Japan would return from holidays. On Friday, investors would keep an eye on the release of key Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate, and other directional cues. Also, one should track Fed Chair Powell Speaks on Thursday and CPI & Core CPI data on Friday.