Both benchmark indices ended the week with losses. The Nifty 50 lost nearly 3.83 percent while the 30-share Sensex fell 3.72 percent. Extensive sales have also been seen in the wider market. Sectorally, metals and power stocks were under heavy selling pressure.
“High levels of inflation in the domestic market, further growth in policy rates, persistently high inflation in major economies, including the United States, and the possibility of sustainable high prices for crude oil, edible oil, food grains, etc., and much more. Has had a negative impact on, ”said Joseph Thomas, head of research at MK Wealth Management.
“These factors will continue to have an impact on the market in the coming weeks.”
Here are the main reasons that could guide the markets this week:
Most major companies have already announced their March quarterly numbers, but there are still many smaller companies that have yet to announce earnings updates. Below are some of the names that will announce the numbers for the week. Thus, this name can cause volatile movement.
Monday: India Forge,, MCX,
Tuesday:, DLF, GMR Infra,,
Wednesday:,,, Lupine, NDTV,
Thursday: Alkyl Amine,, Endurance Tech,, HPCL
Friday:,, MapMyIndia, Paytm, Sobha
Rising inflation in the last few months is a major concern for the market. Traders will keep an eye on metrics and discussions around the issue. India, meanwhile, will also release wholesale inflation data for the week of April, which could follow up with retail inflation.
Bima Behemoth Life Insurance Corporation of India will be listed on Tuesday. The company has successfully completed all the IPO processes. Most analysts expect a weak listing due to market conditions and relatively low investor participation during the book building process.
Also, three IPOs will be opened for bidding for raising a total of Rs 2,387 crore. The first IPO of fertilizer company Pardeep Phosphates, which will open on Tuesday, May 17. The IPO of luxury watch retail player Ethos will open on Wednesday, May 18th. And will open the IPO of eMudhra, India’s largest licensing certifying authority. Friday.
Trading by foreign institutional investors has put pressure on the market. According to the latest data available, they have already withdrawn Rs 25,216 crore from equity in May. Depending on the trend, it may move forward.
The technical aspect
The Nifty ended sharply negative in 50 weeks and is now trading near a strong support level of 15,700 which coincides with the lower end of the downward sloping channel. Bank Nifty is also trading near the support line of the rising trend line formed from the bottom of March 2020. Both the Indian and major global indices are now at high selling levels. Therefore, immediate rebound in Nifty and Bank Nifty is highly possible, says one analyst.
“Depending on how the Nifty opens next week, highly aggressive traders could start long trades with a drastic stop loss below 15,700. The immediate resistance is now set at 16,600, ”said Yesha Shah, head of equity research at Samco Securities.