Key Benchmark stock indices are likely to consolidate their recent strong gains this week as investors may remain on the sidelines ahead of the Union Budget on February 1 and as they await further signs of global economic recovery.

Global cues along with domestic quarterly earnings results and progress of the vaccine rollout program will determine the trajectory of the Indian equities markets during this week. Besides, volatility is expected to rise in the run-up to the Union Budget FY22 and high-value proposition. "The Nifty has given the first signs of reversing after a steep rise.

The deteriorating advance-decline ratio has also raised concerns over the last few days of the possibility of a formation of a short term top. 14,653-14,215 points are supported for the Nifty for the coming week," said Deepak Jasani, Head of Retail Research at HDFC Securities. "Stock specific moves will continue based on results and other developments."

The week ahead will be heavily influenced by Q3FY21 corporate earnings as companies like Asian Paints, HDFC Bank, Mindtree, Hindustan Zinc and Mphasis are expected to announce their quarterly results.   

In addition, the coming week will witness the swearing-in of the new US President and some of the policy announcements of the new administration.

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