WEEK AHEAD

The market recovered sharply and snapped a five-week losing streak in the highly volatile week ended May 20 with benchmark indices gaining three percent each amid worries over rising interest rate, inflation, volatile global markets and mixed earnings.

In the last week, BSE Sensex added 1,532.77 points (2.90 percent) to close at 54,326.39 while the Nifty50 rose 484.05 points (3.06 percent) to 16,266.2.

On the sectoral front, BSE Metal index surged 7.3 percent, BSE Capital Goods index added 5.3 percent and BSE FMCG, Auto and Realty indices gained four to five percent. On the other hand, Information Technology index fell two percent.

The BSE Small-cap index rose four percent and Mid-cap and Large-cap indices were up three percent each.

We expect choppiness to remain high due to the scheduled monthly expiry. Besides, the monsoon-related updates will also be in focus.

The earnings session is entering the last leg, as more than 1,200 companies are going to announce their March quarter results in the next week.

Companies announcing their earnings next week include Steel Authority of India, Mahindra & Mahindra, Oil and Natural Gas Corporation, Zomato, Adani Ports and SEZ, Grasim Industries, Bank of India, Bata India, Coal India, Fortis Healthcare, MOIL, NHPC, Aban Offshore, Bharat Dynamics, Berger Paints India, Cummins India, Hindalco Industries, Zee Entertainment Enterprises, BEML, Gail (India), Glenmark Pharmaceuticals, Godrej Industries, India Cements, Jindal Steel & Power, and United Spirits.

Technically Nifty formed a bullish candle on the weekly scale after the decline of last five weeks and now a negation in lower highs on the weekly scale could trigger short covering spike.

"Now it has to hold above 16161 zones to extend this bounce towards 16400 and 16666 zones while on the downside support exists at 16000 and 15800 zones.