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Below is weekly note on Market By Ms. Yesha Shah, Head of Equity Research, Samco Securities 

Technical Outlook

Nifty 50 closed the week on a negative note taking cues from global indices and has closed just around its immediate support level of 17,450. On a weekly chart, the index has formed an evening star candlestick pattern, indicating bearishness. After the highs of October 2021, a lower top lower bottom pattern has been forming on the benchmark index. The broader indices also have a similar trend and the overall structure of the market has been shifting to the bearish side. A decisive fall below 17,450 levels can lead to a retest of 16,900 zone. Thus, traders should maintain a mild bearish outlook going into the next week. A move above the immediate resistance level of 17,850 can negate the bearish outlook.

Expectations for the week

As earnings season gathers pace, D-street will be eyeing quarterly results to gauge the future trajectory of Mr. Market. BFSI as well as IT companies will be in limelight as market players decode results and management commentary of a slew of companies in these sectors. As no major global or domestic macroeconomic events are expected next week, stock-specific movements will be more pronounced and whipsaw movements can be witnessed as a result of earnings hits and misses. Therefore, instead of basing investment actions solely on quarterly performance, investors should consider long-term potential of their investee companies and stay put in resilient ones.

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