Indian stock markets have outperformed most global market this week even though India is witnessing the highest number of new COVID cases worldwide. Nifty-50 is up 2.5 percent while the Nifty Mid Cap 100 Index and BSE Small Cap Index are up 3.2 percent and and 3.4 percent, respectively. Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities, said metal stocks continued their dream run with the BSE Metals Index gaining 10 percent this week, 24 percent this month and 53 percent on calendar year to date basis. Other sectors which outperformed the benchmark Index are banking, oil and gas, consumer durables and realty.
Almost all global markets have shown flattish movement in this week. Indian markets could face headwinds on every rise because of the looming negatives and threat to earnings. Most of the earnings that are coming are in line with estimates which is already discounted by the market. One can stay cautious and look to have a buy on dips strategy for future investments.
The benchmark indices Sensex and Nifty each slipped nearly 2 percent. Pharma stocks buck the trend on the bourses on Friday (30 April).
Mohit Nigam, Head, PMS, Hem Securities said banking and financials which led the rally this week were the laggards on Friday witnessing profit booking. NIFTY Bank ended down by 2.94 percent. "The exit polls of four states and one Union territory showed that the Bharatiya Janata Party (BJP) may not get a majority in fiercely fought state of West Bengal denting the sentiment of the markets. Reliance Industries numbers today will set the tone for the next week's opening along with developments on the COVID front. A closing below 14,650 is slightly negative for the markets," he said.
Nagaraj Shetti, Technical Research Analyst, HDFC Securities said the Nifty on the weekly chart formed a small body of positive candle with long upper shadow. "This action signal a failed attempt of upside breakout of last few months range movement. Nifty is currently placed above the crucial moving averages of weekly 10 and 20 period around 14250 and 14600 levels. Hence, there could be another attempt of upside bounce by next week. Nifty as per monthly chart has formed a high wave type candle pattern in April month, beside the doji pattern of March month. Hence, there is no reversal formation after a doji of last month at new highs. The formation of long lower shadow in the last two monthly candle could mean a possibility of a comeback of bulls from the lower levels again," he said.