In a volatile week, markets made a comeback with Friday's pullback after two straight days of rout witnessed in Wednesday's and Thursday's session but went lower by 1.6% on both the Nifty and Sensex. Nifty and Sensex after Friday's session were at 14507 and 49008, respectively. Also, FPIs were net sellers in Indian equity for the last 5 trading sessions. Global cues remained mixed with economic outlook improving in the US at one end and coronavirus restrictions being enforced in some of the nations including India.
Nonetheless as per charts there is seen that Nifty shall trend higher and will sustain the momentum seen on Friday. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is quoted as saying in a leading business dailies as "On Thursday, the market stopped at a large support area and formed a bullish pattern today, which give us an indication that the coming week may be positive for the market".
As per analyst at HDFC Securities, Nifty on the weekly chart has bounced back from the weekly 10 period EMA this week. The moving average is now at 14,590 and the Nifty closed just below it, as per week's close. Previously, such downside violations of this EMA has offered strong upside bounce in the subsequent weeks in past," he said.
"If the index manages to breach 14,700 and sustain above it, analyst at HDFC Securities believes it could open the possibility of further upside. On the downside, he is keeping a close eye on 14,400-14,350.
Markets to be guided by vaccination pace, q4Fy21 results
Market direction to be guided by pace of vaccination in the country, fourth quarter results which are expected to be positive given the market recovery from the slowdown induced by the Covid 19 pandemic. Though, challenges continue to remain with the ongoing second coronavirus wave in the country, with the world also experiencing the same and FIIs pulling out money from the Indian indices owing to surging yields.
Note there will be just 3 sessions of trading next week, with market shut on March 29 and April 2 for Holi and Good Friday, respectively.