The Indian stock market had a bumpy run in the 500 point range throughout the week. Nifty started this week with a gap down at the open and then recovered from the lows of 16900. Although the index traded in a range of 500 points throughout the week, the volatility within the range has been one of the most difficult to trade. Ultimately, the index ended the week around 17400 with a loss of around 0.5% from last week’s close. Volatility in international markets has also led to movements on both sides in our market.
According to stock experts, the Nifty 50 index corrected from 18,115 to 16,825 and then consolidated in a range. This led to the formation of a “bear flag” pattern on the daily chart. In the event that the Nifty breaks through the end of the support at 16825, it would trigger a strong short-term correction, which is usually the impact of the pattern mentioned above. On the other hand, 17380-17420 has now become a significant hurdle that must be overcome for any positivity.
It is therefore important that investors and market traders keep the above mentioned levels in mind and continue to analyze the main triggers that could dictate the stock market next week. Here we list the top 5 triggers that traders and investors can watch out for:
1]IPO of LIC: This highly anticipated public offering will open on May 4, 2022. Thus, individuals and large investors are expected to divert their money from the current shareholding towards LIC’s IPO. Thus, strong selling ahead of the opening of LIC’s IPO is expected.
Speaking on the impact of LIC’s IPO on the stock market next week, Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “LIC’s IPO is expected to attract good response So retail and domestic institutional investors (DIIs) are expected to divert their existing equity investments to public issuance.So we can see both FIIs and DIIs as net sellers ahead of the open of LIC’s IPO.
2]Q4 results: Corporate earnings are also expected to continue to dominate the stock market in the coming week. Speaking on the fourth quarter results due next week, Divam Sharma, founder of Green Portfolio – a SEBI registered portfolio management service provider, said: “The fourth quarter results will continue to attract the attention of investors. along with companies like Dabur, Happiest Minds, Tata Consumer, Adani Green, 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 meeting is scheduled for next week. Although he announced that there would be a 50 basis point interest rate hike, it is worth keeping an eye on the final outcome of the meeting as it would provide more clarity on the interest rate hike. interest and monetary tightening.
4]Covid cases in India: “Concerns over new Covid 19 cases have been rising in India in recent days, as the figure stood at 16,980 on Thursday. In the event of a huge increase in the number of new covid cases in India, sales could still increase 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 due next week. It will give direction to economic activities. We also expect the continuation of a high number of collections in April, said Divam Sharma of Green Portfolio.
Warning: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.