Indian stock markets are expected to be under pressure when they open on Monday. ESB and ESN were closed for trading on Thursday and Friday due to public holidays. Most Asian markets were in the red today after a negative lead from Wall Street. In addition to concerns about soaring inflation, the continuing war between Ukraine and Russia has added to uncertainty about the global economic recovery from the Covid-19 pandemic. European and American markets are closed today.
India’s stock market benchmark NSE Nifty 50 closed 0.31% lower at 17,475.65 on Wednesday and the S&P BSE Sensex fell 0.41% to 58,338.93. The yield on the benchmark 10-year bond ended at 7.2148%, while the rupee settled at 76.1750 to the dollar.
“Indian markets will react to two major earnings i.e. Infosys and HDFC Bank on Monday i.e. April 18th. Additionally, any major developments on the global front would also impact sentiment. On the index front, Nifty is currently respecting the first line of defense namely 20 EMA on the daily chart around 17,400 and its breakout may push the index towards the 17,250 area. 17,650-17,750 would act as an immediate hurdle,” said Ajit Mishra, Vice President – Research, Religare Broking Ltd.
HDFC Bank announces its results on Saturday (April 16, 2022). Infosys, which reported after-hours earnings on Wednesday, gave a sales forecast that fell short of analysts’ estimates. Revenue in this fiscal year ending March 2023 will grow 13% to 15% in constant currency terms, lagging the 17% growth that analysts had forecast on average. The title fell sharply in New York.
Nifty futures on the Singapore exchange (SGX Nifty) fell to 17,301 amid weak global signals.
Central banks in several major economies, including the United States, Canada and Britain, have already started raising interest rates to contain prices, but the European Central Bank on Thursday stuck to its stimulus plans and its rates unchanged. Friday to provide support to the economy hit by the Covid. But the People’s Bank of China left them unchanged.
Russia is a major global supplier of oil and gas and, together with Ukraine, is also a key player in the grain sector. The conflict has shaken markets for these products. The war has driven up oil prices, with reports swirling of new energy sanctions against Russia.
“On a weekly chart, the index has formed an evening star candlestick pattern, indicating a downtrend. Following the October 2021 highs, an upper lower lower lower pattern has formed on the benchmark. The broader indices are also trending similarly and the overall market structure has shifted to the bearish side.A decisive drop below the 17,450 levels may lead to a retest of the 16,900 zone. should maintain a slightly bearish outlook for next week. A move above the immediate resistance level of 17,850 may negate the bearish outlook,” said Yesha Shah, Head of Equity Research, Samco Securities.
“As the earnings season gathers pace, D-street will be monitoring quarterly results to assess Mr. Market’s future trajectory. BFSI as well as IT companies will be in the spotlight as market participants decode the results and insights. management commentary from a host of companies in these sectors As no major global or national macro events are expected next week, stock-specific movements will be more pronounced and see-saw movements can be seen due to positive and negative results,” she added.