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Below the Quote on Weekly Note by Mr. Ajit Mishra, SVP - Research, Religare Broking Ltd

Benchmark Ended Higher For The Third Successive Week

Markets continued trading higher for the third consecutive week, registering more than one percent gains amid sustained foreign fund inflows and robust corporate earnings. After an initial surge, the benchmarks traded in a narrow range throughout the week but managed to close higher with positive bias. Ultimately, the Nifty and Sensex ended at 24,346.70 and 80,501.99 respectively.

Key Market Drivers

Markets ended with gains amid positive India’s IIP data while industrial production growth accelerated to 3 per cent in Marchalong with global market stability which was driven by continuous dialogue with the U.S. on a bilateral trade deal. This was further fueled by foreign institutional investor (FII) movement, those were net buyers for the week, bolstered market sentiment. RBI also expressed optimism over India’s growth prospects and demonstrated remarkable resilience and dynamism.

Sectoral Snapshot

Sector-wise, continued buying seen in the Realty sector that stood out as key driver. Additionally, the auto, IT, pharma, and Energy sectors also posted gains. Conversely, media, metals and fast-moving consumer goods (FMCG) sectors ended the week in the red. Broader markets mirrored the trend, closing flat to marginally lower amid intra-week volatility and swings.

Key Events to Watch

The coming week is crucial, packed with key domestic and global triggers. With developments regarding tariff and geopolitical tensions with Pakistan will still remain on the radar. On the macroeconomic front, investors would be eyeing the HSBC Composite PMI and HSBC Services PMI Final data. While on the global front, Fed Interest Rate Decision is due on 7th May where they would be discussing about the future rate cut path.

On the corporate earnings front, several prominent companies—including M&M, Coal India, Asian Paints, L&T, Titan, Coforge, One 97 Communication, Pidilite Industries and Dr, Reddy’s Labs—are set to release their quarterly results. Globally, updates related to tariffs and trade will also be watched closely.

Technical Outlook

The Nifty continued it’s upwards rally for the third straight week which has been almost a vertical rise, possibility of some consolidation can not be ruled out before the next major directional move. Nifty hovered between a range of 24,000 to 24,600 while it will be crucial to hold the 23,800 level downside to maintain its bullish tone; a breach could lead to extended day, 100-day, and 200-day EMAs still supporting upside.On the flip side, a decisive breakout above 24,400 on the closing basis could re-ignite bullish momentum, potentially propelling the index toward the 24,800 mark.

Bank Nifty continues to show consolidation after a vertical rise while supporting relative strength, above key moving averages even after profit booking of the initial rise. While some consolidation may be seen in the banking index, the broader tone remains optimistic. After a sideways move, in case we see further correction near 52,800-53,700 levels, buying interest is expected to emerge with an upside potential toward 55,500–57,000.

Strategy Ahead

Looking at the present scenario, it is advisable to maintain a positiveapproach with “buy on dips” strategy and a preference for hedged positions in the index. Meanwhile, selective stock-picking opportunities continue to emerge with sector specific preferences. Hence, the focus should be on identifying stocks with favorable risk-reward setups.

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