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Below is coming week market report By Mr. Santosh Meena, Head of Research, Swastika Investmart Ltd.

The outcome of the FOMC meeting will remain a key factor amid nervous global markets

The Indian equity market ends on a weak note for the third week in a row however the losses were mild. The market remained range-bound but a stock-specific move was there amid Q4 earnings. The market is likely to kick off next week on a somber note after a sharp fall in the US market overnight then the focus will shift to the outcome of the US FOMC meeting which is crucial amid record inflation and growth worries. The FOMC meeting is scheduled for Wednesday and the Indian market will react to it on Thursday. The next week is going to be a truncated one as the market will remain shut on Tuesday on account of Ramzan Eid. Global cues will dominate because apart from the FOMC meeting, there will be a release of BOE interest decisions, US Payroll numbers, and Worldwide PMI numbers.

The movement in commodity prices, dollar index, and FIIs' behavior will remain other key factors.

On the domestic front, we will have monthly Auto sales numbers whereas there will be lots of Q4 earnings including  Reliance, Britannia, HDFC Ltd, Adani Enterprises, Heromoto corp, Tata Steel, Titan, Kotak Mahindra Bank, and Tata Power.

If we talk about the derivative data then the May series begins on a light note where FIIs' long exposure in index future stands at 37% which is in oversold territory while the put-call ratio is sitting at 0.96 level that is also heading towards the oversold zone.

Technically, the Nifty is stuck in the range of 16850-17450 and any decisive move from this band will dictate the further direction of the market. If the Nifty slips below the 16850 level then there will be a risk of any major correction where 16600/16400 are the next important support levels. On the upside, 17300 is an immediate resistance while if Nifty manages to cross the 17450 level then 17600 will be the next hurdle. Banknifty has a critical support zone of 35500-35000 and if it slips below this zone then there will be a risk of a move towards the 34000 level. On the upside, 36700-37000 is a critical supply zone; above this, we can expect a short-covering rally.

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