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Below are Views On Weekly Note by Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets remained under pressure for yet another week as rising COVID-19 cases nationwide and strict restrictions announced by several state governments dented sentiments. However, as the week progressed, favorable vaccine-related updates and supportive global markets capped the damage. Finally, Nifty settled with a cut of nearly 2% to close at 14,341.35 levels. On the sector front, pharma and metal ended with healthy gains whereas all the other indices traded subdued wherein realty, FMCG and auto were the top losers. 

We do not see the volatility easing out in the coming week too, thanks to scheduled data and events. First, the monthly expiry of April month derivatives contracts will keep the traders on their toes. On the data front, core sector data will be unveiled on April 30. The recent proposal by the US president to raise capital gains tax has started showing its impact in US markets which may cascade to others in the coming week. Needless to say, the COVID-related updates will remain on the participants’ radar.

With the progress of the earnings season, some big names like Axis Bank, Maruti, Bajaj Auto, Hindustan Unilever and Indusind Bank will announce their numbers along with several others.

Markets are showing tremendous strength this year so far but it’s too early to presume that we’re out of woods. We reiterate our view that the prevailing sideways bias in Nifty would end below 14,100 and it may slip towards the 13,800 zone. In the case of a rebound, 14,600 would act as a crucial hurdle. We feel it’s prudent to stay with defensive names and see how the markets pan out in the coming week. 

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