Sensex | Nifty: LIC IPO IPO, Fed Meets Among 6 Factors That Might Steer Market This Week

New Delhi: The local stock market tightly held its consolidation band for the second week in a row and finally ended with a cut of nearly half a per cent. Tension in global markets combined with a mixed start to fourth-quarter earnings domestically kept volatility high throughout the week.

The new week is a shorter week than the holiday and will be significant because some important events and data are lined up. Participants will first interact with car sales figures. On the macro front, markets are looking forward to the manufacturing PMI and services PMI data on May 2 and May 5, respectively.

Subscription for the long-awaited initial public offering of insurance giant LIC will open on May 4. Globally, the outcome of the US Federal Reserve meeting will be in focus.

“Participants should identify situations and focus on identifying sectors/topics that show resilience amid standardization bias. Ajit Mishra, Vice President of Research, Ajit Mishra, said: Religer Mediation.

Here are the main factors that will guide the markets next week:

Q4 earnings
There are a number of major companies that will release their quarterly numbers during the week. This will result in specific stock moves.

Monday: Britannia, Inox Leisure, M&M Financial

Tuesday: Adani Projects, Hero Moto, Network18, Broadcast TV18, Tata Steel, Titan

Wednesday: Adani Green, Adani Total Gas, CarTrade, Kotak Mahindra Bank, SIS, Tata Consumer

Thursday: Adani Transmission, CAMS, Dabur, CEAT, Marico, TVS Motor

Friday: Federal Bank, Reliance Industries, Tata Power

Saturday: Naveen Florin

An Initial Public Offering (IPO) for the life insurance company (LIC) will also open from May 4 for subscription. The government will sell Rs 20,557 crore of shares in the IPO. Given the massive issuance volume, the IPO is expected to test investor appetite and the liquidity geared towards the IPO could moderately affect secondary markets.

Federal Open Market Committee meeting
The US Federal Reserve will decide its monetary policy next week. Markets are ruling out a 50bps rate hike this time around, and the focus of their comment will be on how much price hikes will take place in the future. If there is any deviation in the amount of prices, the market will react accordingly.

Car sales data
Auto companies will start reporting April sales data from today onwards which will have an impact on the sector in the coming days. When the market opens on Monday, we can expect movements in certain stocks.

Analysts who track the auto sector said wedding bells ringing across the country and rising rural incomes are helping motorcycle makers regain mojo and restore sales through April. Sales in the passenger car segment are also likely to be better.

macro data
Traders will also be reacting to a batch of macro data that will be released during the week. This includes PMI data, preliminary export and import data, and loan and deposit growth data.

technical outlook
Nifty50 was combined for two weeks in the 16,900 to 17,350 range. A crucial support area was established around 16800 levels and the index managed to bounce several times from this level.

“On the weekly chart, while the Nifty formed a doji candlestick pattern last week, an inverted hammer formed this week. This is a bullish indicator as the pattern is indicating a potential bottom and we may see a trend reversal in the future. Therefore, we recommend that traders maintain a bullish stance on the indicator for 2 weeks. The next two have a target of 18,000,” said Yesha Shah, Head of Equity Research, Samco Securities.

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