Both benchmarks ended the week with losses. Nifty50 lost about 3.83 percent while the 30-share Sensex fell 3.72 percent. The broader market also saw heavy selling. On the sectoral front, metals and energy stocks came under intense selling pressure.
“The high level of inflation in domestic markets, the potential for further policy price hikes, persistently high inflation in major economies including the United States, and the potential for persistently high prices for crude oil, edible oil, food grains, etc.,” said Joseph Thomas, Head of Research at Emkay. Wealth Management, “Noise in the market due to slower economic growth in the coming quarters had a negative impact on the markets.”
“These factors will continue to affect the markets in the coming weeks.”
Here are the main factors that may guide the markets this week:
Most of the notable companies have already announced their March quarter numbers, but there are still many smaller companies that have yet to announce their earnings update. Here are some of those who will be announcing the numbers during the week. Thus, there can be a volatile movement in these names.
Monday: MCX Forge Spices
Tuesday: DLF, GMR Infra,,
Wednesday: Lupin, NDTV
Thursday: Alkylamine Endurance Technology HPCL
Friday: MapMyIndia, Paytm, Sobha
Rising inflation has been a major market concern in the past few months. Traders will be watching the scale and discussions on this issue. Meanwhile, India will also release wholesale inflation data for April during the week, which is also likely to rise after retail inflation.
LIC . menu
The life insurance giant of India will be listed on Tuesday. The company has successfully completed all IPO procedures. Most analysts expect a weak listing given the market conditions and the relatively low investor participation during the book building process.
Besides, three public offerings will be opened for bidding in a bid to raise a total of Rs 2,387 crore. The first public offering of fertilizer company Paradeep Phosphates, which opens on Tuesday 17 May. Friday.
FII . flow
Selling by foreign institutional investors kept the market under pressure. As per the latest available data, they have already withdrawn Rs 25,216 crore from the shares so far in May. As the trend goes, this may continue to move forward as well.
Nifty50 ended the week sharply negative and is now trading around the strong support level at 15700 which coincides with the lower end of the downward sloping channel. Bank Nifty is also trading near ascending trend line support formed from the March 2020 lows. Both major Indian and global indices are at oversold levels now. One analyst said an immediate recovery in Nifty and Bank Nifty is very possible.
“Based on how Nifty opens next week, more aggressive traders may start long positions with a tight stop just below 15,700. Immediate resistance is now identified at 16,600 levels,” said Yesha Shah, Head of Equity Research, Samco Securities.