BSE Power, Nifty Microcap 250 top earners on BSE, NSE this week; Fourth-quarter earnings will propel D-Street into next week, analyst says

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Indian markets settled with gains of over 0.5% on the last day of the week as the Reserve Bank of India (RBI) opted to maintain the status quo around key rates on Friday, April 8, 2022.

The benchmark Nifty50 and S&P BSE Sensex indices closed up 0.8% and 0.7% respectively on Friday after ending in the red for three straight days. The market had three negative closes and ended up in the green zone twice this week.

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“The market has been cautious over the last 2-3 days ahead of the RBI meeting and its future policy direction. Actions in line with market expectations led to a relief rally,” said Vinod Nair, head of the research at Geojit Financial Services.

With the exception of Nifty IT, which closed with marginal reductions, all sectors posted positive closes, with consumer staples, metals and consumer durables stocks attracting peak buying interest on Friday.

After the flagship indices, the Nifty midcap and small cap indices gained 0.98% and 0.39% respectively on Friday.

How are the NSE and BSE indices moving this week?

Meanwhile, the Nifty50 and 30-stock Sensex managed to end positively with gains of 0.6% and 0.3% respectively for the week ended April 8, 2022.

With gains of 9%, S&P BSE Power was the best performing index on the BSE and Nifty Microcap 250 led the indices on the NSE with gains of 6% this week.

On the BSE, S&P BSE Utilities, S&P BSE SME IPO, S&P BSE Infra and S&P BSE CPSE were the other main gainers with gains of 8.7%, 8.6%, 4.8% and 4.5% respectively.

Nifty CPSE (4.8%), Nifty Commodities (4.5%), Nifty FMCG (4.4%) and Nifty Metal (4.3%) were the best performing indices on the NSE this week.

Triggers for next week

As shares on Dalal Street were largely driven by the RBI’s Monetary Policy Committee meeting and its outcome this week, the week ahead will focus on corporate earnings.

“After RBI policy, the focus has shifted to the fourth quarter earnings season, which will start next week, led by the IT and banking sector. The outlook for the banking sector is strong due to the rapid rebound in credit growth and balance sheet improvement, while the outlook for IT is mixed as the fourth quarter is seasonally weak,” said Vinod Nair.

Technical control

The technical chart suggests a consolidation of around 500 points in the coming weeks.

“On the weekly chart, the Nifty has formed a candle that resembles a Doji pattern, which indicates a loss of momentum after the recent rise from 17000. The daily momentum indicator is also showing signs of fatigue. The structure overall suggests that a short term consolidation is on the cards which may develop in the 17500 to 18000 range over the next two weeks,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.

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