Throughout the week, the Indian stock market remained volatile in the range of 500 points. Nifty started the week with a gap down opening and then recovered from the low of 16900. Though the index was trading in a range of 500 points throughout the week, volatility within this range was the hardest to trade. Ultimately, the index ended around 17400 with a loss of almost half a percentage point compared to the previous week’s end. Due to the volatility in the international markets, both sides moved in our market too.
according to this Share Market According to experts, the Nifty 50 index has corrected from 18,115 to 16,825 and then consolidated within a range. This has formed a ‘bearish flag’ pattern on the daily chart. If Nifty breaks the support level of 16825, it will lead to a sharp correction in the short term which is generally an effect of the above pattern. On the other hand, 17380-17420 has now become a strong hurdle that needs to be crossed for any positivity.
Therefore, it is important for market investors and traders to keep the above mentioned levels in mind and continue scanning for key triggers that could affect the stock market in the next week. Here we list the top 5 triggers that traders and investors can keep an eye on:
1]LIC IPO: This much awaited public offering is going to open on 4th May 2022. Hence, retail and large investors are expected to convert their money from existing shareholding to LIC IPO. Hence, a sharp sell-off is expected before LIC’s IPO opens.
Speaking on the impact of LIC IPO on the stock market next week, Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “LIC IPO is expected to get a good response from investors. Hence, retail and domestic institutional investors (DIIs) are looking to invest in their existing investments. The shareholding for the public issue is expected to be removed. Hence, we can consider both FIIs and DIIs as net sellers before opening the LIC IPO.”
2]Q4 Results: Corporate earnings are expected to continue to dominate the stock market in the coming weeks as well. Speaking on the expected fourth quarter results next week, Divam Sharma, Founder, Green Portfolio – a SEBI registered portfolio management services provider, said, “The Q4 results are attracting investor attention with companies like Dabur, Happiest Minds, Tata Consumer, Adani Green and many more. Will continue. JSW Energy, Tata Steel, Titan, Network 18 and Yes Bank are some of the prominent names announcing the results.”
3]US Fed Meeting: The US Fed is expected to meet next week. While it has announced that the interest rate will be hiked by 50 bps, the final outcome of the meeting should be watched as it will bring more clarity on interest rate hike and monetary tightening.
4]Covid cases in India: Jitendra Upadhyay said, “There has been a growing concern about new Kovid 19 cases in India for the last few days as the figure stood at 16,980 on Thursday. The sales by FIIs may pick up further if there is a huge jump in the number of new Kovid cases in India. ” 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. This will give direction to economic activities. Divam Sharma, Green Portfolio said, “We expect a continuation of a strong collection numbers in April as well.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.