Bull run expected to continue this week amid strong quarterly earning show

NEW DELHI: The market scaled new highs last week with the Nifty50 surpassing 18,000 and the BSE Sensex scaling above the 61,000-mark for the first time. The 30-share index added 1,246.89 points or 2.08% to end the Friday session at record closing high of 61,305.95, while the Nifty50 closed at 18,338.55 with 443.35 points or 2.48% gains.

According to market experts, the momentum is expected to continue in the market with the ongoing corporate earnings season showing strong growth numbers. The market on Monday will first react to HDFC Bank and Avenue Supermarts’ quarterly earnings announced on October 16.

“We are seeing an unprecedented bull run where valorous bulls are marching towards the 18500 level, ignoring all worries of inflation and rising bond yields where we haven’t seen any major pullback for a long time,” said Santosh Meena, Head of Research, Swastika Investmart.

According to Meena, technically, 18500 (for Nifty) is an immediate and psychological hurdle while 18700 will be the upsloping trendline resistance. On the downside, 18250 is an immediate support level while 18000-17950 will be the critical support zone at any correction.

He added that IT sector may underperform as it is forming lower highs and lower lows formation while Metal sector is witnessing fresh expansion phase and may see good gain ahead. PSU banks may also continue their strength in the coming days.

The quarterly earnings season will be in full swing this week as nearly 200 companies will declare their Q2FY22 results. The most anticipated ones are UltraTech Cement, ACC, Hindustan Unilever, Nestle India, Asian Paints, Yes Bank, JSW Steel, TVS Motor Company, HDFC Life, L&T Infotech, Havells India, Jubilant Foodworks, Biocon, PVR, Tata Consumer Products, Reliance Industries, ICICI Bank among other ones.

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel One Ltd) also said that this rally has been relentless in nature and they must admit that it has overshot their expectations by a fair margin.