Week Ahead

The Nifty 50 fell 372 points in the week to close at 22,147, and the BSE Sensex was down 1,157 points, at 73,088, while the Nifty Midcap 100 index fell 2.7 percent and the Smallcap 100 index declined 1.4 percent.

In the coming week, the markets are expected to react to Wipro and HDFC Bank quarterly results that were announced over the weekend. Overall, the benchmark indices may consolidate further with focus on the March FY24 quarterly earnings, advance quarterly estimates for US GDP, and Middle East tensions. Further, given the monthly expiry of April futures and options contracts during the week ahead, volatility can't be ruled out.

On the domestic front, market participants will focus more on corporate earnings and hence, there will be more stock-specific action. Nearly 160 companies will release their quarterly earnings next week, including prominent names like Reliance Industries, Tata Consumer Products, Axis Bank, Hindustan Unilever, LTIMindtree, Bajaj Finance, IndusInd Bank, Nestle India, Tech Mahindra, Bajaj Finserv, HCL Technologies, Maruti Suzuki India, ICICI Bank, SBI Life Insurance Company, and Shriram Finance, which collectively have nearly 34 percent weightage in the Nifty 50.

Technically, the market trend seems to have turned strong with the formation of Bullish Piercing Line and Double Bottom kind of patterns on the daily charts, which are considered to be bullish reversal patterns.

Looking ahead, the next resistance level to monitor is around 22,300, with a possibility of extending to 22,500 if sustained momentum persists. Immediate support rests at 22,000.