Markets week ahead: From bank deposits growth to Q4 earnings, factors that may drive Nifty, Sensex

The coming week is expected to be guided by last quarter's results to be announced by a number of companies including ICICI Bank, Yes Bank, HCL Tech, Hindustan Zinc, and Tata Communications. 

Traders will be eyeing the results of Angel One, Just Dial, NETWORK18, and Quick Heal Technologies which will release the numbers on April 17), followed by CRISIL, ICICI Lombard General Insurance Company, and Tata Coffee on April 18. 

While Mastek and Tata Communications will announce the results on April 19, Cyient, HCL Technologies, ICICI Prudential Life Insurance Company will release the numbers on April 20, and Tejas Networks, ICICI Bank, Yes Bank, and Hindustan Zinc on April 21.

Traders will also be looking forward to deposit growth and bank loan growth which is scheduled to be released on April 21, 2023. The value of deposits in India increased 9.6 per cent year-on-year in the fortnight ending March 24, 2023, and the value of loans in India increased 15 per cent year-on-year in the fortnight ending March 24, 2023.

Foreign investments

The FPI (Foreign Portfolio Investment) trend suddenly changed for the better in April, said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "FPIs were buyers in all days of April and so far have bought equity for Rs 7,531 crore, NSDL. India has been one of the best investment destinations for FPIs among emerging markets in April so far. The correlation between FPI and the market has become very significant. FPIs were continuous buyers in the market during the last ten trading days and the market posted continuous gains during the last nine trading days."

Vijaykumar further said that FPI buying and short covering were driving the current rally. "Global market construct has also been positive, FPIs are buyers in capital goods, construction, and FMCG and sellers in IT and oil and gas, IT is likely to witness more selling in the coming days since the growth prospects for the segment appear weak an indicated by the Q4 results of TCS and Infosys. Capital goods, financials, and construction-related segments are likely to witness more buying as indicated," he said.

US market data

On the global front from the US, traders will first be eyeing Redbook on April 18, 2023, followed by EIA Crude Oil Stocks Change on April 19, Philadelphia Fed Manufacturing Index, Initial Jobless Claims, Existing Home Sales on April 20, and finally S&P Global Manufacturing PMI Flash, S&P Global Services PMI Flash, Baker Hughes Total Rig Count on April 21.

Outlook for Nifty

Deepak Jasani, Head of Retail Research at HDFC Securities, said: "Nifty made a marginally higher top on April 13 compared to the previous day and managed to close higher. It could make some more attempts to rise in the coming sessions. However, profit-taking after such a relentless rise may be expected. Nifty could face resistance in the 17,884-17,925 band while 17,717 could offer support for the near term.

Bank Nifty

Rupak De, Senior Technical Analyst at LKP Securities, said: "The BANK NIFTY has continued its strong upward momentum, surpassing the budget day high of 42,016 with solid volume in the space. The index remains in buy mode and will likely move towards 42,440-42,680 levels on the upside. On the lower end, Bank Nifty has support at 41,800; as long as this support is not breached, the trend remains positive."