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Investor sentiment was dented by the record high daily cases of Coronavirus infections of over 3.32 lakh while a record 2,263 people had died in the last 24 hours. Hospitals struggled to arrange for beds and oxygen supplies.

Here’s how experts see markets trading the next week

Manish Shah, Founder, Niftytriggers.com

Nifty closed the week marginally lower and the pattern for the week is a spinning top having a very small real body and long shadows. The pattern showcases lack of directional interest among the market participants. It is one of the narrowest week in last several weeks.

On the daily time frame it again is a small ranged body suggesting uncertainty. When one looks at a bunch of candles in last 8 sessions it is apparent that the Nifty refuses to nudge lower.

Fear is a bigger emotion than greed. And the lack of bear power to push Nifty lower is a testimony that long term investors are too bearish on the overall market.

Immediate resistance in Nifty is at 14525-14550 a break above this and expect an upmove towards 14700-14775. On the lower end support is at 14190-14180. A break below this and there should be a decline to 13900-13850.

Ajit Mishra, VP – Research, Religare Broking
In a volatile trading session, the Indian markets swung both ways before ending the session in the red.

The announcement from state governments and rising COVID-19 cases would continue to remain number one factor for investors to watch out for in the near term.

Further, earnings outcome from Nifty majors would induce stock specific volatility. We maintain our cautious stance for the markets in the near term as increasing restriction would adversely impact economic activity and earnings.

Rusmik Oza, EVP, Head of Fundamental Research, Kotak Securities

Indian markets succumbed to FPI selling this week on account of the sharp rise in Covid cases. FPIs have remained net sellers this week with the INR sustaining at ~75 level against the USD.

Metals stocks and mid cap pharma companies have been the biggest gainers this week. Steel, aluminium and copper prices are near or at decade high which is leading to upside risk in earnings estimates of most metal stocks.

The rising cases of Covid has once again brought focus into mid cap pharma companies which have moved up sharply anywhere between 12 & 35%.

As India has become the epicentre of the virus resurgence there is fear of potential earnings downgrades which could turn out to be higher in case of mid & small caps vis-à-vis the large caps.

Fresh lockdowns and restrictions being imposed by various state governments will impact demand and also business activity. The persistent rise in hard commodity prices is a threat which could weigh on margins of many manufacturing companies.

Too many potential negatives have come together which could impact markets in the very near future. Given the near term challenges and sentiment we can expect FPI flows to remain subdued in the near term. On the downside Nifty has major supports at 13,600 and 13,000 which is likely to be the 200 DMA in near future.