Domestic markets are expected to open flat on Monday amid a lack of cues. With host exchanges closed for Easter Monday, analysts expect the market to remain flat.

Experts believe investors will wait for Q4 results which will trickle this week. TCS will be the first major company to delcare its quarterly results on April 12, while Infosys will do so the next day.

Investors will closely monitor these companies’ performance and outlook and take position accordingly, they added.

Besides, on the macroeconomic front, participants will be eyeing IIP and CPI inflation on April 12 and WPI Inflation on April 14. Apart from domestic factors, global cues and trends of foreign flows will also be in focus, said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

Eyes on FPIs

Analysts expect a return of foreign portfolio investors as buyers that could help the market stabilising.

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The domestic market has regained some strength thanks to a slew of positive news, such as higher auto sales data, higher-than-expected PMI manufacturing data, strong quarterly bank and NBFC numbers, and cut in windfall tax. Besides, the RBI’s surprising pause in interest rate hike was the game changer. It is expected to have a constructive effect, led by a drop in market yields that encourages both bond and stock prices to rally, said Vinod Nair, Head of Research at Geojit Financial Services.

“Given the upside horizon on domestic growth and a stable financial market, India is expected to have an edge in the performance of equities going forward. We can expect FII inflows to prosper going forward,” he added.

According to the analyst, volumes will remain low at the exchanges.

The last two weeks of the rebound have certainly eased pressure, but we need a decisive close above 17,700 in Nifty for a short- term trend reversal. “Banking, financials and FMCG majors have played their part in the initial leg of recovery and now contribution from other key sectors like energy, IT and auto would be critical to help Nifty to retest 18100+ zone,” said Mishra.

In case of any profit-taking, the 17,200-17,400 zone would offer the needed support.

“Meanwhile, we recommend continuing with a “buy on dips” approach, with focus on risk management citing the rise in volatility due to upcoming earnings season, he added.

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