Weekly market wrap: Nifty, Sensex post worst week in a month amid geopolitical tensions

Weekly market wrap: Indian equity markets witnessed ir worst weekly performance in a month during holiday-shortened week ended April 19, 2024. This decline is attributed to rising geopolitical tensions, particularly escalating conflict between Iran and Israel. global investor sentiment shifted towards safe-haven assets, pushing gold prices above $2,400 per ounce during week.

Market performance

benchmark indices, Sensex and Nifty, fell by 1.6 per cent and 1.7 per cent respectively. Broer markets underperformed even furr, with BSE Midcap and Smallcap declining 2.2 per cent and 1.0 per cent week-over-week (WoW). Sectoral analysis by SBI Securities revealed that all sectors ended negative on BSE, with BSE IT experiencing sharpest decline at 4.6 per cent lower WoW.

Experts point toward significant impact of geopolitical developments on global markets. Investors will be closely monitoring se developments next week to gauge ir continued influence.

Earnings season and US data

upcoming week will also be marked by earnings season, with Reliance Industries' March quarter results being a major focus for investors. In US, key data points such as 1QCY24 GDP number, core PCE index, and initial jobless claims (through April 20th) will be on ir rar.

In near term, SBI Securities recommends that investors prioritise quality businesses with strong earnings growth potential to navigate market volatility. report identifies zone of 21,800-21,750 as crucial support for Nifty. If this zone holds, index is expected to experience a pullback rally to level of 22,350-22,400, followed by 22,600 in short term. Conversely, a sustained move below 21,750 could le to a correction down to 21,450-21,300.

Corporate highlights

• Infosys' 4QFY24 consolidated revenue grew marginally year-over-year (YoY) but declined slightly quarter-over-quarter (QoQ). However, net profit witnessed significant growth.
• Angel One reported strong growth in revenue and profit for 4QFY24, with highest ever client dition during quarter.
• Bajaj Auto's standalone revenue grew YoY, with improved margins. company's profit after tax (PAT) also increased YoY.
• Vesuvius India inaugurated a new plant to expand its manufacturing capabilities in India.
• TARC achieved record pre-sales figures for FY24 and 4QFY24.
• Brige Enterprises reported its highest ever pre-sales figures for FY24 and 4QFY24.
• Landmark Cars reported growth in consolidated proforma revenue for FY24 and 4QFY24.
• Jio Financial Services announced a joint venture with BlackRock to undertake wealth management business in India.
• Ambuja Cements received ditional investment from ani family.
• RVNL signed a MoU with a Turkish firm for collaboration in infrastructure projects.
• SJVN formed a joint venture with an Assam power distribution company for renewable energy projects.

Domestic and global economic updates

• India's wholesale inflation remained subdued in March 2024.
• India's tre deficit narrowed in March 2024 compared to February 2024. Merchandise exports reached record highs.
• Domestic air passenger traffic increased YoY in March 2024.
   

What's ahe: Technical analysis by SBI Securities

formation of a "Piercing Line" candlestick pattern on Nifty daily chart is seen as a potential bullish reversal signal, especially considering its emergence near a critical support zone, according to SBI Securities. This, combined with or technical indicators, suggests a possible pullback rally in near term.

"In dition to bullish formation observed, index has successfully reclaimed its 50-day EMA level (22110). Particularly notable is daily Relative Strength Index (RSI), which has found support around 40-42 zone and has experienced a significant rebound. It's worth highlighting that throughout this calendar year, this zone has consistently served as a robust support level for RSI," according to SBI Securities.