Indian equity benchmarks continued their upward trajectory this week, with the Nifty50 rising 1.3% and the Sensex gaining 1.6%. In contrast, broader markets lost momentum after outperforming in the previous week. The BSE Midcap index edged up 0.4% week-on-week, while the Smallcap index slipped 1.3%.
On Friday, the benchmark BSE Sensex added 259.75 points or 0.32% to close at 80,502, while the broader Nifty50 ended at 24,346.70, up 12.50 points or 0.05%.
“A small bullish candle was formed on the daily chart with a long upper shadow. Technically, this market action could indicate an upside breakout attempt at the 24,500–24,600 hurdle. The presence of resistance at higher levels could suggest increased volatility with a weak bias,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
A decisive move above the 24,500–24,600 range could open the door to further gains toward 24,800–25,000 levels, while any weakness from current levels could find support around 24,000–23,800 in the near term, he added.
Key factors likely to influence market movement this week:
1. Fed Meeting Outcome
Globally, investor focus will be on the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for May 7. Any decision regarding interest rate cuts could influence market sentiment.
2. Q4 Earnings
The Q4FY25 earnings season will gather momentum next week. The market will react to the results of two key banking heavyweights—SBI and Kotak Mahindra Bank—both of which announced earnings on Saturday.
3. Macroeconomic Data
Domestically, the April 2025 HSBC Services PMI will be closely watched. In the US, attention will be on the April 2025 S&P Global Services PMI, March 2025 Balance of Trade (USD), and weekly initial jobless claims.
4. India-Pakistan Tensions
Rising tensions along the Line of Control (LoC) have kept markets on edge. Any escalation may weigh on risk sentiment and prompt a flight to safety.
5. Technical Factors
“Looking ahead, the next significant resistance for the Nifty lies at 24,540. A successful breakout could push it toward 24,800, followed by 25,200 in the short term,” said SBI Securities.
On the downside, immediate support is seen at 24,200. A break below this level could lead to a slide toward the next support at 23,850.
6. FII Activity
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained net buyers during the week, with net purchases of Rs 10,071 crore and Rs 9,270 crore, respectively.
7. Crude Oil Movement
Brent crude posted its steepest monthly decline since November 2021, falling 15.2% amid a supply glut after Saudi Arabia signaled an extended phase of low prices by boosting production. However, prices later recovered and settled at $62 per barrel following U.S. threats to impose sanctions on Iran.
8. Rupee/Dollar Movement
The Indian Rupee appreciated 1.06% during the week (as of 3:30 PM on May 2), breaching the 84-per-dollar mark for the first time since October 2024.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
On Friday, the benchmark BSE Sensex added 259.75 points or 0.32% to close at 80,502, while the broader Nifty50 ended at 24,346.70, up 12.50 points or 0.05%.
“A small bullish candle was formed on the daily chart with a long upper shadow. Technically, this market action could indicate an upside breakout attempt at the 24,500–24,600 hurdle. The presence of resistance at higher levels could suggest increased volatility with a weak bias,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
A decisive move above the 24,500–24,600 range could open the door to further gains toward 24,800–25,000 levels, while any weakness from current levels could find support around 24,000–23,800 in the near term, he added.
Key factors likely to influence market movement this week:
1. Fed Meeting Outcome
Globally, investor focus will be on the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for May 7. Any decision regarding interest rate cuts could influence market sentiment.
2. Q4 Earnings
The Q4FY25 earnings season will gather momentum next week. The market will react to the results of two key banking heavyweights—SBI and Kotak Mahindra Bank—both of which announced earnings on Saturday.
3. Macroeconomic Data
Domestically, the April 2025 HSBC Services PMI will be closely watched. In the US, attention will be on the April 2025 S&P Global Services PMI, March 2025 Balance of Trade (USD), and weekly initial jobless claims.
4. India-Pakistan Tensions
Rising tensions along the Line of Control (LoC) have kept markets on edge. Any escalation may weigh on risk sentiment and prompt a flight to safety.
5. Technical Factors
“Looking ahead, the next significant resistance for the Nifty lies at 24,540. A successful breakout could push it toward 24,800, followed by 25,200 in the short term,” said SBI Securities.
On the downside, immediate support is seen at 24,200. A break below this level could lead to a slide toward the next support at 23,850.
6. FII Activity
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained net buyers during the week, with net purchases of Rs 10,071 crore and Rs 9,270 crore, respectively.
7. Crude Oil Movement
Brent crude posted its steepest monthly decline since November 2021, falling 15.2% amid a supply glut after Saudi Arabia signaled an extended phase of low prices by boosting production. However, prices later recovered and settled at $62 per barrel following U.S. threats to impose sanctions on Iran.
8. Rupee/Dollar Movement
The Indian Rupee appreciated 1.06% during the week (as of 3:30 PM on May 2), breaching the 84-per-dollar mark for the first time since October 2024.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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