ICICI Direct: Weekly Equity Pulse

Previous week

Indian markets continued the rally of the previous week and completed the ninth straight week of gain. Trading remained volatile throughout the week. After a four-day long weekend the market on the very first day of the week witnessed a sharp gap-up opening and rallied more than 5% on that same day. For the rest of the week the market remained volatile with both side movement. The market, however, closed the week with a weak undertone on profit booking at higher levels, shrugging off about 2% gains. On a week-on-week basis, the BSE Sensex gained 473 points or more than 4% to close at 11876.43. The S&P CNX Nifty ended at 3620.79, up about 147 points or around 4.2%.

Week Ahead

Though the market maintained its positive undertone in the previous week, the downfall on the last day remains a matter of concern. Thus, sustainability of the recent rally still remains under question. Also, we are nearing the completion of the last phase of the parliamentary elections next week and results the following week. This is going to be a very important event for the market as far as the short-medium term direction is concerned. Also, in the coming week India’s industrial production data for March would be released and the market would be closely watching that too. Globally also, there are some important data lined up for release during the next week including US trade balance for March, retail sales for April, PPI and CPI for April, industrial production for April and Euro Zone GDP for Q1. These are also expected to have an impact on the market across the globe. Overall, the market in the coming week is likely to remain cautious and should see some profit booking at higher levels.

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