HDFC Bank, ICICI Bank, HCL Tech poised to steer markets next week

As we step into the new week, all eyes will be on some heavyweight earnings announcements. Leading the pack are major banks like HDFC Bank and ICICI Bank, whose results could set the tone for the financial markets. Other key names on the quarterly earnings calendar include HCL Technologies, Axis Bank, Hindustan Unilever (HUL), and Maruti Suzuki.

What Else to Watch

On the derivatives front, the expiry of the April series contracts is likely to stir up some volatility in the market. Globally, investors will be closely tracking developments around trade tariffs and their possible ripple effects on international markets.

Nifty Technical Outlook

According to Ajit Mishra, SVP - Technical Research at Religare Broking, the Nifty has been moving within a wide range of 21,700 to 23,800 over the past couple of months. The index has now touched the higher end of this band and reclaimed its crucial 100-day and 200-day exponential moving averages (EMAs).

Looking ahead, Mishra believes the ongoing positive momentum is set to continue. The index could potentially climb towards the 24,250–24,600 levels. On the downside, if the market sees a dip, the 23,000–23,300 zone is expected to act as a strong support area.

Banking Index in Focus

A noteworthy trend has been the sustained strength in the banking sector, which is now approaching record-high levels. The upcoming earnings from HDFC Bank and ICICI Bank will be key in determining the market’s next move. Mishra notes that the banking index could target the 55,000–57,000 range, following a prolonged consolidation phase over the last nine months. If the sector faces pressure, the 51,900–53,400 zone is likely to provide reliable support.

Market Sentiment & Strategy

Adding to the positive sentiment, a sharp decline in the India VIX (Volatility Index) signals reduced market fear after recent choppiness. Sector-wise, banking, financials, auto, and realty stocks remain in focus, especially with rate-sensitive sectors seeing steady interest.

Mishra suggests sticking with a ‘buy on dips’ strategy, as long as the Nifty holds above the 23,000 mark. He advises investors to stay selective in other sectors and prioritize fundamentally strong stocks, particularly with the earnings season in full swing. A broad-based market participation is also lending strength to the ongoing bullish trend.

Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.