What will guide the markets sentiment in the next few days?

 Equity markets are beginning to turn volatile as profit-making at higher levels is capping the upsides. Let's look at the key events that will guide the sentiment and trading strategies for investors

Equity markets have kick-started the calendar year 2022 in a buoyant mood. Despite the lingering Omicron threat, which is sweeping across economies globally, world stocks managed to end the previous week in the positive zone.
Bulls took charge with renewed zest last week, but some trepidation was observed in the mid-week as markets interpreted the Fed’s hawkish policy minutes.
Given this, benchmark indices staged an over 1.5 percent rally last week, with the BSE Sensex and the Nifty50 parked at 59,745 and 17,813 levels, respectively.
In the broader markets, the BSE MidCap and SmallCap indices gained about 2 per cent and 1.5 per cent, respectively.
That said, market moves may be slightly erratic from here on as quarterly results begin to pour in.
Over 40 companies will report their December quarterly figures this week, including IT majors TCS, Infosys, and HCL Tech, and banking giant HDFC Bank.
In recent weeks, Indian IT stocks have outpaced the benchmark, fuelled by expectations of an increase in deals and a resultant stellar growth momentum.
Thus, margin projection, revenue guidance, and attrition figures will be monitored during the earnings announcement.
As regards banks, green shoots have appeared, with 10 out of 13 banks reporting double-digit loan growth as per the Q3FY22 business update.
This has raised expectations of the earnings momentum of Q2FY22 continuing in Q3FY22.
That said, in light of recent developments surrounding the Omicron variant of Covid, it will be crucial to monitor management commentary on growth outlook and risk perspective.