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Markets settled almost unchanged in a volatile week amid mixed signals. Initially, the tone was positive, which further strengthened on the weekly expiry day however a sharp cut in the HDFC twins on the final session erased all the gains. Consequently, both the benchmark indices, Nifty and Sensex, ended unchanged at 18,069 and 61,054.29 levels respectively. Meanwhile, sectoral indices traded mixed wherein auto, energy and FMCG posted decent gains while banking, realty and pharma settled lower. The broader indices managed to end higher for yet another week and gained in the range of 0.5%-1.0%.

In the coming week, participants will be eyeing macro economic data viz. IIP and CPI for cues on May 12. Besides, the US inflation, which is scheduled on May 10, will also be on their radar.

On the earnings front, Dr. Reddy, LT, Asian Paints, Eicher Motors, Cipla, HPCL and Tata Motors are some of the prominent names who will announce their numbers during the week.

Markets are likely to spend some time around the current levels, after the sharp slide in the banking index.Meanwhile, rotational buying in other key sectors like auto, FMCG, energy and IT would continue to offer trading opportunities. On the index front, 17,850 will continue to act ascrucial support while the upside seems capped at 18,350 levels.We thus recommend focusing on stock selection and overnight risk management until Nifty resumes the trend.

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