Stock market this week: There was some cooling in the major indices in the short week, as market participants looked to lighten their positions ahead of the long weekend. The Nifty 50 index closed below 17,500 with a weekly decline of 1.74 per cent. The 50-stock index has corrected from its high of 18,115 to end the week below the 17,500 mark.
During this correctional phase, the midcap space initially outperformed as the broader markets saw good buying, however, nifty midcap index The last few sessions saw some profit-booking ahead of the long weekend. As the market is going to open on Monday after a long gap, it is important for investors and traders to know the key triggers that could set the pace for the secondary market in the short term.
Here we list down the top 5 factors that may affect the Indian stock market this week:
1]Q4 Results / Corporate Earnings: In this highly volatile market, a good number of investors and traders have started following stock specific trading. For such traders and investors, the fourth quarter of the company to be announced this week will be significant.
Divam Sharma, Founder, Green Portfolio said, “As the results season begins, we will see more results in the coming week with some of the biggest FMCG companies, banks and tech companies like HDFC Bank, HCL Tech, Nestle and ICICI Bank . “
2]Cases of COVID-19 in India: Concerns of a fourth wave of COVID are around the corner and 1150 new COVID cases have been reported in India in the last 24 hours (as per data updated by the Health Ministry at 8 am today). Hence, there has been an increase in fresh Covid cases in India as the figure stood at 949 on Friday.
Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “With FIIs turning on the net sellers side, it will be important to see how the fourth wave of Covid in India pans out. Any spike in fresh cases could further accelerate selling by FIIs “
3]FII Trading Patterns: After coming with DII as the net buyer for a few sessions, FII has once again started the selling spree. Since 6 April 2022, FIIs have remained net sellers in successive sessions.
Avinash Gorakshakar said, “Nifty is facing resistance at 17,750 to 17,800 levels. If FIIs continue to be net sellers, the chances of Nifty breaking this barrier will turn serious. Hence, the first one of this week will be. Trading pattern of FIIs in two sessions is significant,” Avinash Gorakshakar said. ,
4]Global Inflation: US inflation hit a 40-year high last week and any rise in crude could further add to inflationary concerns for global equity markets.
“Amid failed peace talks in the Russia-Ukraine war, fuel prices are more likely to rise and could create new inflationary concerns for global markets as it could end US Fed initiatives to curb inflation. Therefore, all factors related to inflation need to remain in one’s focus this week,” said Anuj Gupta, Vice President – Research, IIFL Securities.
5]US IIP Data: After disappointing inflation data last week, the whole world is eagerly waiting for the US IIP numbers this week as it will indicate the macro-economic condition of the US economy. Any more disappointing data from the US government will dent equity investor sentiment across the globe and Dalal Street will be no exception.