Investors Await Q1 Earnings As Nifty Faces Key Resistance Levels

    Indian equities started the week subdued as investors awaited first-quarter earnings for market direction. The Nifty closed three points lower and the Sensex dropped 36 points amid lacklustre trading.

    The FMCG sector outperformed by rallying 1.5%, while the PSU Bank index fell by 1.5%. Gains in ITC Ltd. and Reliance Industries Ltd. countered losses in HDFC Bank Ltd. and Titan Co., keeping indices muted.

    For the bulls now, 24,360/80,100 would be the key resistance level. Post 24,360/80,100, the index could move up 24,450–24,500/80,400–80,600. “On the flip side, dismissal of 24,240/79,730 may accelerate selling pressure. Below which, the market could retest the level of 24,160-24,120/79,500-79,200,” said Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

    “However, India remains an attractive investment destination amid a healthy economic and earnings growth momentum, and the FPIs cannot afford to ignore the markets for too long,” according to Avdhut Bagkar, technical and derivatives analyst at StoxBox. He attributed the continued market optimism to IT services finding flavour ahead of the upcoming Q1 FY25 earnings season.

    The Bank Nifty’s stability is compromised by HDFC Bank’s impact, with the potential for deeper declines, if crucial support at 52,000 breaks, said Hemen Kapadia, senior vice president of institutional equity at KR Choksey Stocks & Securities. He highlighted HDFC Bank Ltd.’s pivotal role in disrupting the technical outlook, advising caution as the indices are currently in uncertain territory.

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