Market outlook: What will dictate market trend this week?

Equity markets ended the holiday-shortened week on a tepid note as rising bond yields, coupled with expected monetary tightening, high crude oil prices and anxiety ahead of Q4 results, back home, weighed on the investor sentiment. The BSE S&P Sensex and the NSE Nifty 50 indices declined nearly 2% in the three-day trading week while the Bank Nifty index managed to better the benchmarks, with a loss of 0.8%. The Nifty IT index, however, tanked about 3% in the result heavy week. And, as the markets open today after a four-day gap, it will have to factor in a host of developments in the world markets.

Besides, it will also react to the earnings reported during the break including that of Infosys and HDFC Bank. That apart, all eyes will be on WPI-based inflation numbers which will be released later today. On the earnings front Mindtree, ACC, L&T Infotech, Tata Elxsi, HCL Technologies, ICICI Lombard, L&T Technology, Nestle, Hindustan Zinc, Tata Metaliks and ICICI Bank are some of the prominent companies due to announce Q4 results this week. Globally, China’s macroeconomic data, developments in the world markets, and the Ukraine war shall be closely tracked. From a sectoral viewpoint, here’s how Vinod Nair of Geojit Financial Services expects the market action to pan out. Against this backdrop technical charts suggest a trading range of 17,150 to 18,000 for the Nifty50 index, with a support at 17,300 level. For the Sensex, tech charts indicate support at 57,700 and resistance at 59,000.

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