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Technical Outlook

Nifty 50 ended the week on a flattish note. Though mid-week a sharp fall was witnessed, the benchmark quickly recouped lost ground after re-testing the crucial support of 16,800. Since a month, Nifty Small-cap and Midcap indices have outperformed Nifty indicating bullishness in the broader markets. While the benchmark is likely to now remain range-bound between 16,800 to 18,100 levels, traders are advised to go into the next week with a bullish bias. However, a decisive break below 16,800 level will negate the bullish view and may result in short-term weakness

Expectations for the week

Markets sentiment next week will primarily be driven by the quarterly results and the monthly expiry. Further, as Covid cases are rising in various Indian locations, the pace of its spread will be kept an eye on. Globally, movement in Treasury yields and dollar index coupled with developments on in the Ukraine-Russia conflict will influence market movements. While no other major domestic or global macro events are scheduled for next week, the factors highlighted above will keep markets choppy. Investors are thereby advised to navigate prudently and avoid aggressive trades.

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