The week gone by trade was challenging for the benchmark indices as the market correction continued. Nifty50 ended the week with a net loss of 1.51 per cent. During the week, Nifty violated key support levels and dragged the resistance lower. The index made a failed attempt to cross the crucial hurdle of 15,800, which resulted in profit-booking at higher levels.
Some important levels to watch in the coming week are the immediate support at 15,450 levels, followed by the major support zone of 15,200-15,250. On the upside, Nifty needs to surpass the 15,700-15,750 levels to regain the positive momentum. The upcoming week could be crucial for the market as it awaits cues from global factors, earnings announcements, and domestic economic data.
Nifty Bank continued to underperform during the past week, ending with a loss of 2.43 per cent. The index witnessed a sharp correction and failed to hold above the 34,000 psychological mark. In the coming week, Nifty Bank is likely to find support around the 33,000-33,250 levels, while the resistance is seen at 33,750 and 34,000 levels. Any sustainable move above the 34,000 mark could trigger a fresh rally in banking stocks.
On the sectoral front, IT and Pharma were the outperformers last week, while sectors like Metals, Auto, and Banking witnessed profit-booking. IT stocks continued their upward journey, thanks to strong quarterly results and favorable currency movements. Pharma stocks also gained on the back of positive news flow related to vaccine rollout and demand for healthcare products.
The upcoming week is crucial as major companies are scheduled to report their quarterly results. The market will closely watch the earnings performance and guidance provided by these companies. Any positive surprises could boost market sentiment, while disappointments might lead to further correction.
Global factors such as the outcome of the US Fed meeting and trends in global markets will also play a crucial role in determining market direction. Traders and investors are advised to remain cautious and focus on stock-specific opportunities in the current market environment.
Overall, the upcoming week is expected to be volatile, with the market reacting to a mix of global and domestic factors. Traders should maintain a cautious approach, stick to their risk management strategy, and focus on quality stocks with strong fundamentals.