Indian stock market had a bumpy ride within a 500 point range throughout the week. Nifty started this week with a gap down opening and then recovered from the lows of 16900 mark. Although the index traded within a range of 500 points throughout the week, the volatility within the range was one the most difficult to trade. Ultimately, the index ended the week around 17400 with a loss of about half-a-percent over last week’s close. The volatility in international markets led to moves on both sides in our market too.
According to stock market experts, Nifty 50 index has corrected from 18,115 to 16,825 and has then consolidated within a range. This has led to formation of a ‘Bearish Flag’ pattern on the daily chart. In case the Nifty breaches the support end of 16825, then that would led to a sharp correction in the short term which is usually the impact of the above mentioned pattern. On the flipside, 17380-17420 has now become a strong hurdle which needs to be surpassed for any positivity.
So, it is important for the market investors and traders to keep the above-mentioned levels in mind and continue scanning major triggers that may dictate stock market in next week. Here we list out top 5 triggers that traders and investors can watch out for:
1] LIC IPO: This much-awaited public issue is going to open on 4th May 2022. So, retail and big investors are expected to divert their money from current shareholding to LIC IPO. So, sharp selling ahead of LIC IPO opening is expected.
Speaking on LIC IPO impact on stock market next week, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “LIC IPO is expected to attract good response from investors. So, retail and domestic institutional investors (DIIs) are expected to divert their existing shareholdings towards the public issue. So, we may see both FIIs and DIIs as net seller ahead of LIC IPO opening.”
2] Q4 results: Corporate earnings are expected to continue dominating stock market in upcoming week as well. Speaking on the Q4 results expected next week, Divam Sharma, Founder at Green Portfolio — a SEBI Registered Portfolio Management Service Provider said, “Q4 results will continue to dominate the investor attention with companies like Dabur, Happiest Minds, Tata Consumer, Adani Green, JSW Energy, Tata Steel, Titan, Network 18, and Yes Bank being some of the prominent names announcing results.”
3] US Fed meeting: US Fed meeting is expected next week. Though, it has made an announcement that there would be 50 bps interest rate hike, one should keep an eye on the final outcome from the meeting as it would bring more clarity on interest rate hike and monetary tightening.
4] Covid cases in India: “Concerns of new Covid 19 cases have been increasing in India for last few days as the figure stood at 16,980 on Thursday. In case of huge jump in number of new covid cases in India may further spurt selling by FIIs,” said Jitendra Upadhyay, Senior Equity Research Analyst at Bonanza Portfolio.
5] GST collection data: India’s Goods and Services Tax (GST) collection data for April 2022 is expected next week. It will give a direction of the economic activities. We anticipate continuity of a strong collection number in April also, said Divam Sharma of Green Portfolio.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.