Stock market this week: After a long weekend, the Indian stock markets witnessed a lot of volatility last week, correcting after an initial downtrend and the NSE Nifty testing the level around 16,800. It recovered from that level in the middle of the week and crossed the 17,400 mark, but it was not over yet as it gave up some gains in the previous trading session and ended below 17,200 with a weekly loss of 1.74 per cent. On Friday, Indian stocks broke a two-day winning streak on April 22, fueled by Fed Chair Powell’s signal about an imminent rate hike of 50 bps in June.
So, when it reopens on Monday; Global cues, F&O closure, Q4 earnings etc are expected to dominate the stock market this week. Here we list the top 5 triggers for Indian stocks this week What traders and investors need to pay attention to:
1]Reliance Share Price Movement: Reliance Industries Limited (RIL) has called for a shutdown 24,700 crore retail deal with Future Group, which is going to have an impact on the Indian stock market. “Reliance Industries weighs around one-sixth of the total strength of the Sensex and is considered one of the heavyweight stocks on Dalal Street. Following RIL’s announcement of canceling its retail trading deal with Future Group, Reliance shares are expected to decline further, said Avinash Gorakshakar, Head of Research, Profitmart Securities, heat of sell-off on Monday and a few more upcoming sessions.
2]Behavior of FIIs: Stock market investors asked to keep a watch on the trading pattern of FIIs; Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “FIIs have been a consistent sell-off in the Indian equity market and their behavior will be crucial amid concerns of aggressive rate hikes in the United States.” He said that foreign investors have been continuously selling in Indian indices since October 2021 (except one week at the beginning of this month). In April 2022, FII has sold Indian shares 29,206.19 crore so far. Hence, it is important to keep an eye on the trading behavior of FIIs as status quo in their trading pattern would mean heavy selling at the highs or heavy beating in the first few sessions.
“If we look at the derivatives data, the put-call ratio is sitting at 0.91 level while FII long exposure to index futures is 47%, both of which are moving towards oversold zone,” said Santosh Meena.
3]US GDP Data: The US Gross Domestic Product (GDP) figures are expected on 28 April 2022. Avinash Gorakshakar of Profitmart said, “In case of disappointing US GDP data, inflationary concerns will further increase, adding to selling pressure on global equity markets including Dalal Street.” securities.
4]Q4 Results: “In Q4 earnings terms, markets will react to ICICI Bank’s results on Monday, while Bajaj Finance, HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, IndusInd Bank, Maruti Suzuki, UltraTech Cement and Wipro will have other key results that are scheduled this week,” said Santosh Meena, Swastika Investmart.
5]Dollar Index: Stock market investors also need to keep an eye on the dollar index. Dollar index has risen to record 101 level and any increase in the index could lead to more FII selling on Dalal Street. Avinash Gorakshakar said, “Historically, FIIs have become net sellers in Indian indices when there is an increase in the dollar index. There will be more selling pressure.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.