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Weekly Note on Market By Ms. Yesha Shah, Head of Equity Research, Samco Securities.

Expectations for the week

Mr. Market is expected to remain volatile due to a slew of market-moving events. On the macroeconomic front, investors will be watching FOMC minutes to see where the economy is headed. Furthermore, global markets would be influenced by China's inflation figures, which are due next week. Back home, the first quarter of fiscal year 23 earnings season will drive market sentiment and stock-specific actions. Investors should pay careful attention to management commentary and select solid fundamental companies in order to focus on the long term picture.

Technical Outlook

The Nifty50 index ended the week slightly lower after trading mostly within a 350-point range. The short-term trend continues to remain bearish, but the nifty has outshone its global peers, with most global equity indices trading or breaking below their recent support. The 15930 resistance level has become a critical resistance level, which needs to be broken to confirm the short-term uptrend. As long as the Nifty does not break above this level, traders should maintain a neutral to a faintly negative outlook. Negative global sentiments are likely to keep the market under strain till then.

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