Nifty 50 Index forecast as Indian earnings season continues

The Nifty 50 Index jumped to the highest point since September last year as the earnings season gained steam. It soared to a high of ₹25,930, up by almost 20% from the lowest level this year. This article explores whether it is a good buy ahead of key Indian earnings.

Donald Trump insists Indian tariffs to continue

The Nifty 50 Index rebounded even as Donald Trump insisted that Indian tariffs would continue for the foreseeable future as long as the country continued buying Russian oil. 

India has struggled to move away from Russian energy, where it has benefited from the substantial discounts. Its top companies like Reliance buy this crude oil, refine it for domestic use, and then export some to other countries. 

Trump’s statement came as India and the US have continued deliberations. As we wrote before, the two countries have largely reached an agreement, with the Russian oil being the only bottleneck. 

India has agreed to reducing tariffs on most US goods and also boost its US energy purchases to close the existing deficit. In exchange, the US will reduce the tariff rate, and possibly tweak the H1-b visa program. 

India earnings season continues

The Nifty 50 Index is also doing well as investors react to the ongoing earnings season. Top Indian banks like ICICI and HDFC published mixed results during the weekend. ICICI reported a modest loan growth, leading to a 3% decline in shares. 

Similarly, HDFC stock jumped to a record high after its quarterly earnings jumped by 10%. Its revenue jumped by 10.3% to ₹59 billion, while the net interest income rose by 4.8% to ₹ billion. Core net interest margin tose to 3.27% on its total assets.

Yes Bank, which is not part of the Nifty 50 Index, also reported mixed earnings. Its proit rose by 18% in the last quarter even as its core income dropped. 

Looking ahead, more Indian companies will continue publishing to publish their results in the coming weeks. Tata Consumer Products published encouraging results on Tuesdy.

Other companies to watch this week are Bajaj Finserv, Bajaj Auto, Hindustan Unilever, NTPC, and Shriram Finance. Companies like Bharat Petroleum, SBI Life Insurance, and Kotak Mohindra Bank will be in focus in the coming weeks.

The Nifty 50 Index will also react to the US earnings season. Some of the top companies to watch this week will be Netflix and Tesla.

Nifty 50 Index analysis 

The daily timefrafme chart shows that the Nifty 50 Index has rebounded in the past few weeks. It has jumped from a low of ₹21,745 in April and has now jumped to a high of ₹25,928 today.

The Nifty 50 Index moved above the key resistance at ₹25,660, its highest point in June this year. It has moved above the upper side of the bullish flag pattern, which is a common continuation sign. 

The Nifty 50 Index has jumped above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the Relative Strength Index (RSI) and the MACD have continued rising. 

Therefore, the index will likely continue rising as bulls target the key resistance level at ₹313, its highest point in September last year. A move above that level will point to more gains, potentially to the psychological point at ₹27,000.

The post Nifty 50 Index forecast as Indian earnings season continues appeared first on Invezz